Introduction: Compliance risk management methods of commercial banks. With the full opening up of the banking industry and the advancement of interest rate liberalization, operational risk issues have become increasingly prominent among many risks, and compliance management and operational risk management are facing severe challenges. Compliance risk management methods for commercial banks
(1) Early warning indicators.
First, there are early warning indicators for changes in laws, regulations and regulatory policies, including capital adequacy ratio, deposit-to-loan ratio, loan concentration ratio, non-performing asset ratio, and case increase and decrease rate. This premium bank training course provides you with a detailed explanation of compliance risk warning indicators.
The second is the early warning indicators of internal organizational compliance risk management, including system coverage rate, risk disclosure rate, risk control rate, employee due diligence exemption rate, case complaint increase and decrease rate, and regulatory penalty increase and decrease rate.
The third is the compliance early warning indicators of business products, including the compliance rate with laws and regulations, the consistency rate with laws and regulations, the clarity rate of operating procedures, the rate of clear job responsibilities, and the adequacy rate of management personnel. The fourth is the compliance early warning indicator system for employee behavior, including rules and regulations learning attendance rate, business error rate, customer complaint rate, business agency rate, and business openness rate.
(2) Measurement standards.
First, if indicators clearly specified by laws and regulations, such as capital adequacy ratio, exceed the specified maximum or minimum standards, they should be subject to early warning.
Second, for indicators that are not clearly stipulated in laws and regulations, early warning objects should be divided according to the specific circumstances, based on the highest value, average value or lowest value. Of course, for compliance risk warnings that are still in the exploratory stage, the indicator system is not static. The rationality of these indicator systems needs to be tested in practice. When early warning results are inconsistent with reality many times, the original indicator system should be revised in a timely manner to improve the accuracy of compliance early warnings.
2. Adopt appropriate early warning methods
Early warning methods include two aspects:
The first is early warning technical methods;
The second is Early warning management methods. The former is how to analyze problems. Currently, there are "compliance risk group method", "discriminant analysis method", "econometric model method", "qualitative description method", etc. that can be used, which is relatively simple; the latter is how to apply early warning According to the results method, this issue is relatively complex and must be comprehensively considered based on the bank's compliance risk management philosophy, the status and role of the compliance department, and the sensitivity of the early warning objects.
3. Establish a compliance risk early warning system
In order to effectively handle compliance risk information and improve the efficiency of compliance risk early warning, a compliance risk early warning system should be established. The components and early warning processes included in the designed effective compliance risk early warning system. Compliance risk management methods for commercial banks
1. Strengthen compliance culture and compliance risk management awareness
The cultivation of compliance culture is the basis for the effective implementation of compliance management. The prerequisite for compliance management. First, the bank's senior management needs to establish the concept that compliance starts with me, because only the senior management can effectively assume the responsibility of promoting a compliance culture throughout the bank, and the bank's compliance management can be effectively implemented. Second, compliance is the guarantee for the stable operation of the banking industry. Compliance awareness should be made deep into every bank employee. The ultimate executor of any compliance plan and system is each business management department. The third is to emphasize the concept of compliance creating value, so that the value created by compliance behavior itself can be reflected in the bank's value system, enhance reputation value and brand value, and make compliance risk management the "value center" of the bank. Fourth, we must conscientiously implement the direct responsibilities of business departments and management departments for compliance risk management, strictly implement the accountability system, so that banks can strike a balance between business expansion and risk management, performance and safety, and strengthen laws, regulations, regulatory provisions and internal Execution of management systems and procedures. Create an atmosphere in which all employees are naturally responsible for the positions they hold, instead of relying solely on supervision and punishment to restrain employees, thereby filling system loopholes and reducing management costs.
2. Create a scientific and effective compliance system and management system
First, the commercial bank’s compliance risk management system responds to the organizational structure, functions, performance guarantees and compliance risk management Provisions shall be made for inspection and supervision. Second, system construction should be linked with business process reform based on its own reality. Conduct a comprehensive and objective assessment of the current system and implementation effectiveness, examine the degree of optimization of business processes, and effectively rectify systems that are not implemented in place or are outdated and need to be revised. To effectively control compliance risks is to establish and improve internal compliance risk management capabilities, ensure the implementation of compliance risk management policies and systems, break the departmental risk management model in which each department operates independently, and optimize and simplify business processes. . After the system is perfected, it is also necessary to actively create a compliance management system to ensure that the bank operates in compliance with laws, regulations, and continues to operate. First, it is clear that the compliance department is a functional department dedicated to assisting bank senior management in implementing compliance risk management. Second, the board of directors and senior management of commercial banks bear the ultimate responsibility for the bank’s compliance operations.
Third, the business department is the final execution department and directly responsible department for compliance plans and work plans. Each employee is responsible for the compliance of the business activities he handles. The compliance department should assist the business department to appropriately set internal control processes and standards. Fourth, the compliance department issues evaluation opinions on compliance risk management capabilities for the performance appraisal of managers in each business department or business line.
3. Strengthen compliance inspection and supervision
Compliance inspection and supervision of commercial banks are an important part of compliance management. Compliance management work must have independent audit supervision. The department conducts objective and independent inspection, supervision and evaluation. The focus should be on process management, that is, whether the relevant business operations have obtained appropriate internal approvals and whether specific laws, regulations, regulatory provisions and internal management systems have been complied with. Only by continuously strengthening compliance inspection and supervision can bank compliance systems fully play their role.
4. Continuously improve compliance risk management methods
Continuously developing and innovating compliance risk management methods is to adapt to the needs of continuous innovation of financial products under the new economic normal, which is mainly reflected in the following Three aspects: First, the compliance department needs to improve the cooperation mechanism with other departments and use the advantages and professional skills of business, risk management and other departments to improve the effectiveness of compliance management. The second is to prevent and warn compliance risks in advance. The third is to establish an effective daily communication and coordination mechanism. In addition, it is necessary to correctly handle the relationship between innovation and compliance, and embed compliance management into the workflow of innovative business. At the same time, it is necessary to fully mobilize the consciousness and initiative of compliance management of business departments and promote independent compliance of business departments. Only in this way can compliance management continue to innovate and develop, and compliance management can penetrate into every business. exert its effectiveness more effectively.