A Study on the Framework for Bank Operational Risk Management：The Domestic Banks as Research Examples

• Main Authors: Ming-Hung Chen, 陳明宏
• Other Authors: Chi-Pang Lo
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/dxdwa9

碩士 === 銘傳大學 === 經濟學系碩士在職專班 === 96 === According to the new regulations of BASEL II accord, the Financial Supervisory Commission, Executive Yuan（FSC）has amended the "Regulations Governing the Capital Adequacy Ratio of Banks" and the "Actuarial Memorandum and Calculation Tables for Regulatory Capital and Risk-weighted Assets of Banks.” on January 4, 2007, which requires domestic banks to enhance their risk management on the basis of three pillars by BASEL II: the first pillar – Minimum Capital Requirements, the second pillar – Supervisory Review Process and the third pillar – Market Discipline. It is the way to empower the competent authority to order the banks improving their risk management and disclosing capital adequacy information. This research introduced the meaning of bank operational risk and the Framework for Risk Management by conducting the literature analytic method, then surveyed the existed Framework for Risk Management of banks by interviewing the executives for operational risk management of the example banks to verify the process of creating the Framework for Operational Risk Management for banks; in the end, it contains the suggestions concerning how the competent authority, banks, school and follow-up researcher should do to strengthen the bank risk management in the future. This research found the following conclusions: 1.All the example banks created rudimental frameworks for operational risk management; 2.Only one bank has been approved by the competent authority for calculating operational risk capital in the Standard Approach, the other two banks choose the Basic Indicator Approach; and all banks agreed that it is nessary to develop more sophisticated operational risk measurement systems and practices to qualify for use of the Standardized Approach or even Advanced Measurement Approaches (AMA)； 3.The board of directors focus on the investments for operational risk management is the key factor in developing operational risk management framework; 4.It is necessary to create a system of inducement to encourage banks for developing the framework for total risk management.