Chinese Banks Face Operational Risks: Urgent Need for Improved Management
The article discusses how Chinese commercial banks are working to measure and manage operational risks, like fraud. While some large banks have made progress, overall, Chinese banks are still learning. They need better data and technology to use complex models for risk measurement. By learning from top international banks, Chinese banks can improve their understanding of operational risk, integrate it into their overall risk management, build a data base of risk losses, and use quantitative methods to manage operational risks more effectively.