The Research of the Foreign Currency Exchange Transaction Risk Management of Commercial Bank
|School||East China Normal University|
|Keywords||Forex Trading Operational risk Basel Risk Management System|
Foreign exchange market has become the world's largest market, after just a few decades time, the foreign exchange market both in breadth and in depth on the pace of development is staggering, foreign exchange transactions are also subject to commercial banks from the past mainly developed to commercial banks, investment banks, foreign exchange dealers, brokers, multinational corporations, fund managers, insurance companies, governments, central banks, pension funds and other subject, the daily trading volume of 1 billion from 1974 dollar rose to $ 2.18 trillion in 2006. From the global development trend, the growing number of lawsuits, the rapid adjustment of the legal and regulatory system, and a new economic model (such as online banking, e-commerce, etc.) the emergence of more sophisticated trading tools and trading strategies, technical reliability of the system, trading volume increased, increasingly stringent regulatory requirements, have increased operational risks faced by financial institutions, this change also began to promote operational risk management from theory to practice. If in the 1990s, the international financial community for operational risk is also no uniform definition, there is no generally accepted measure, there is no publicly available database, there is no mature technology and software, the regulators did not introduce enough attention to the words. So, from the current situation, the international financial community in the operational risk management progress is quite obvious: If already approved on a more consistent definition of operational risk, began to establish viable and practical method to measure operational risk, many advanced The bank has already started to build sophisticated database, the market has a variety of technical services and software for sale, as represented by the Basel Committee regulators, operational risk has already given enough attention. In this paper, the international financial Forex trading theories and knowledge, combined with the current actual development bank foreign exchange transactions, foreign exchange transactions described the development of operational risk management, operational risk management pointed out the importance of strengthening and urgency. With market risk and credit risk comparison, combined with operational risk defined subdivision, point to understand the special nature of the definition of operational risk, operational risk clearly defined, analyzed the Basel II operational risk measurement approach proposed application recommendations. Foreign exchange operations research component of risk management strategy, introduced the general control measures and the use of risk mitigation insurance covering new ideas, through case studies, the use of the above theory and method of emerging business - foreign exchange trading business, operational risk has been identified , measurement and control, and proposed exchange of operational risk management should pay attention to the content.