The research on the early-warning system model of Operational Risk for commercial banks based on BP Neural Network analysis

• Published in: 2009 International Conference on Machine Learning and Cybernetics Vol. 5; pp. 2739 - 2744
• Main Authors: Li-Jie Cao, Li-Jun Liang, Zhi-Xiang Li
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.07.2009
• Subjects: Banking; Biological neural networks; BP Neural Network analysis; Conference management; Control systems; Early-warning system; Feedforward neural networks; Key Risk Indicator; Monitoring; Multi-layer neural network; Neural networks; Operational risk; Risk analysis; Risk management
• ISBN: 9781424437023; 1424437024
• ISSN: 2160-133X
• DOI: 10.1109/ICMLC.2009.5212096

Operational Risk management is an important part of risk management. Facing to today's increasingly frequent operational risk of commercial banks, commercial banks need to develop practical operational risk control procedures and relevant measures, The establishment of Early-warning systems of operational risk would play a very important role in the future risk management. By means of the BP Neural Network analysis and nonlinear model methods, the paper would analyze and resolve the nonlinear relationship between several Key Risk Indicators (KRI) factors of commercial banks operational risk and risk results. According to establish the Early-warning system model of operational risk management for commercial banks, the paper expect that the research could provide some important references to prevent and control effectively operational risk for commercial banks.