What does operational risk management include

Operational risk management includes:

1, infrastructure: people (core operations team, financial management team, other back-up support departments)

2, management structure: management structure, delegation of responsibility, communication

3, control structure: the control environment, checking direct evidence to ensure that effective controls, checking that those things are known in the company

4, measurement and monitoring: risk reporting and internal monitoring procedures, risk indicators or factors, self-assessment. Independent monitoring is basically it, standards and policies: policies, standards and procedures, the composition of effective written policies and procedures

The magnitude of operational risk and its ability to control is the main content of the analysis and evaluation of credit guarantee companies. This consists of three main components: human capital, operating mechanism, and business strategy. A company with a high credit rating should have sufficient human capital, a sound risk management system, perfect mutual checks and balances, and a sound business style.　

1. Human Capital

Human capital is a basic factor in evaluating the risk management ability of a credit guarantee company. Qualified risk management personnel is a prerequisite to ensure effective risk management of a credit guarantee company. According to the characteristics of the business of the credit guarantee company, the quality of the company's management should be analyzed firstly, focusing on understanding whether the professional composition and age mix of the management personnel are reasonable, the risk management experience of the management personnel, the cognition and judgment ability of the risk and the business environment and so on. Secondly, the quality of employees should be analyzed, mainly to understand whether they have the required professional talents and experience in the field. Through the analysis of human capital, the raters can judge whether the credit guarantee company has qualified risk management personnel, whether it is able to comprehensively utilize modern financial asset risk management techniques, and whether the risk management and mutual checks and balances mechanisms are carried through the specific business operations.　

2. Operation Mechanism

To analyze the operation mechanism of a credit guarantee company, we should start from the property right system and corporate governance structure of the credit guarantee company, and study the impact of different types of credit guarantee companies on the corporate governance structure. Understand the leadership system and decision-making procedures of credit guarantee companies, and analyze the potential risks that may arise in decision-making. Understand the management system and its division of authority, focusing on whether the mutual checks and balances between organizations are sound, and whether the management has good external constraints and mutual checks and balances.

For policy guarantee institutions, it is important to focus on analyzing whether the prevention mechanism of moral risk is sound and its impact on the operation of credit guarantee companies. The authority and independence of the supervisory board and internal audit body should be analyzed. Through the analysis of the operating mechanism, it is judged whether the decision-making, execution and consulting of the credit guarantee company are separated, and whether the management and business departments are given appropriate mutual checks and balances.