The Operational Risk Management Information System in Commercial Banks of China: Issues and Analysis

Abstract

Operational risk is the second major risk faced by the commercial banks of China. So how to manage it effectively has always been a fundamental task for us. A consensus had now been reached that the operational risk management of commercial banks in China is a systematic engineering. The operational risk management strategy and operational risk management process, as two important factors in this system engineering, cannot do well without effective underpinning coming from other factors, for example, the operational risk management information system (ORMIS) and so on. In this paper, the operational risk management information system, which has strong supporting to the management of the operational risk of commercial banks in China, has been analyzed in its main functions, its information transmission routes and security. At last, some suggestions have been put forward in order to provide useful help to the operational risk management in commercial banks of China.