An Empirical Analysis of Influencing Factors of Operational Risks for Commercial Banks in China Based on ANP

Abstract

In recent years, operational risks have frequently caused serious criminal cases in commercial banks, and have increasingly drawn the attention of the banking industry. Promoted by the BCBS and required by relevant policies of the CBRC, Chinese banks begin to undertake quantitative research of operational risks, whose influencing factors are varied and interactive. Based on the analytical network process and with four representative Commercial banks as the appraisal objects, this paper chooses key indicators from the personnel, the institution, the process and system, and the exterior aspects of these banks, and makes a quantitative model to analyze the correlation of influencing factors and their weights. In conclusion, operational risks in three types of bank in order is state-owned holding large commercial banks>city commercial banks>joint-stock banks; One-level indexes according to their importance degree in order is human factor>institutional factor>process and system factor>external factor; Secondary indexes in descending order of importance are internal control, personnel quality, corporate governance and other factors. Then, proposals for Chinese commercial banks are given to avoid operational risks.