(1) It covers a wide range of areas, with credit as the key area. Judging from the illegal operations and various cases that have been detected and exposed, they involve all aspects of deposits, credit, investment, financing, settlement, financial accounting, security, computers and other businesses. There are violations, regulations, and violations in almost every business field. Violating discipline and leading to illegal behavior. Credit business is the main asset business of rural credit cooperatives. It is also a site prone to operational risks and causes the greatest harm. There are various credit violations and disciplines, and various violations are used.

First, multiple credit unions issued loans to the same loan households multiple times, thus breaking them into parts and evading loan approval. This became the main form of illegal loan issuance, resulting in serious loan losses. .

Second, loan management is not strict, loan tracking and inspection are not in place, and the loan management system is ineffective.

Third, credit file information is not standardized and comprehensive, leaving hidden dangers to loan security.

Fourth, the loan form was reflected untrue, and the five-level classification of loans was not done in a timely manner. Some credit unions also illegally handle new and repay old loans that do not meet the conditions; other illegal loans such as cross-regional and large-scale loans are also common.

(2) It is highly harmful and aims to embezzle funds. Because the operational risks of rural credit cooperatives cover a wide range of areas and occur with high frequency, and most operational risks are caused by subjective moral factors with the main purpose of embezzling funds, they are very harmful to rural credit cooperatives.

First, the quality of loans has been greatly reduced. Before the reform of rural credit cooperatives, the actual non-performing loan rate of rural credit cooperatives nationwide was more than 50%.

The second is direct financial losses. Illegal borrowing of funds, absconding with money, bill fraud, computer crimes, security accidents, counter operation errors, etc. all cause serious financial losses.

The third is to leave hidden risks. Although some operational risks do not cause direct or immediate losses, they leave hidden risks and bring immeasurable difficulties to operations.

The fourth is causing legal disputes. Due to imperfect systems and irregular operations, there are legal loopholes that can easily lead to legal disputes. Once a lawsuit is brought to court, you will most likely be in a disadvantageous legal position. No matter what form it takes, the main purpose of operational risk creators is to misappropriate funds, and the consequences for rural credit cooperatives are capital losses and increased risks.