ABSTRACT
Operational risk is one of the three risks faced by commercial banks. Studies on operational risk in China started relatively late. The China Banking Regulatory Commission formally gave the definition of operational risk in 2005 and proposed 13 relevant suggestions. In late 2009, it published “validation guidelines for measurement of commercial bank capital”. Since then, operational risk management in China has moved to a higher criterion, and requirements for the technology applied to measure operational risk are improving as well.
