The Operational Risk Internal Control Research of Farmer Loan in the Agricultural Bank of China
|Keywords||Agricultural bank of China farmer loan operational risk internal control|
In recent20years, related data showed that it had happened more than120bankcrisis in over100countries in the world and almost all crisis were related withoperational risk, so the harmfulness of operational risk should be taken intoconsideration seriously. Compared with the credit risk management and market riskmanagement, Agricultural bank of China was lack of inexperience in studying andmanagement of the operational risk, well behind the western commercial Banks.However, the competitiveness of the commercial banks depends finally on the level ofinternal management and the construction of risk control system. Consequently, it isof great significance for commercial bank to improve its operational risk internalcontrol system and perfect the operational risk internal control system by usingmodern commercial bank management experience for reference under taking its actualsituation into consideration.Firstly, this paper reviews research results which scholars both at home andabroad study commercial banks operational risk and states related theory ofcommercial bank internal control and commercial bank operational risk in detail,including specifically the definition, principle and characteristics of commercial bankinternal control, the definition, features, classification of commercial bankoperational risk, operational risk identification, operational risk assessment,operational risk response and the analysis of the relation between the internal controland operational risk. And then basis for the related study and on the basis of farmerloan of Agricultural bank of China, the paper points out the existing problems ofoperational risk internal control of farmer loan in the bank and analyses the reason forthe existing problems. Finally, this paper introduces the foreign experience about howto manage operational risk by using internal control and under taking the actualsituation of farmer loan into account in Agricultural bank of China, gives some adviceabout how to improve operational risk internal control of farmer loan.