Bank business process reengineering and decentralization

1.

CEO Zhang Ruimin pointed out that the implementation of Haier's e-commerce depends on the advantages of "one name, two networks": famous brand is famous brand, brand awareness and customer loyalty are Haier's significant advantages. "Two networks" refer to Haier's sales network and payment network. Haier's global sales, distribution, service network and payment network are all over the world. We don't believe that e-commerce will succeed without foundation, because there is no business process reengineering, no intranet and extranet application, no enterprise information application system, and e-commerce platform is no different from castles in the air

First of all, Haier has realized network management, network marketing, network service and network procurement in the aspect of instrial direction transfer. Relying on Haier's brand influence and existing market distribution and service network, it has laid a solid foundation for the transformation of e-commerce. In terms of management transfer, the pyramid management system of traditional enterprises can no longer meet the needs of market development. Therefore, it subverts the pyramid in the management mechanism and establishes a new process aiming at the market

2. The main goal of enterprises has changed from profit maximization to customer-centered and market-oriented. Within the enterprise, everyone should be responsible for the market, not the superior. Haier Group also set up logistics, business flow, capital flow three flow promotion headquarters. As the third profit source, logistics directly purchases from international companies, which reces the cost and improves the competitiveness of procts. Business flow reces costs and improves efficiency by integrating resources, while capital flow ensures the smooth flow of capital

Haier has a relatively complete marketing system. There are more than 40 telephone service centers, more than 10000 sales outlets, and even more than 60000 villages. That's why some websites have restrictions on where to place orders. Haier can deliver goods nationwide

4. Construction of Haier e-commerce platform. We do not want to hype concepts and themes, but to enter an integrated world economy. Therefore, Haier has invested more than 100 million yuan to establish its own it support platform to serve e-commerce

5. Prospect

Haier e-commerce platform will develop into a public platform, which can not only sell Haier's procts, but also sell other kinds of procts; It can not only meet Haier's own procurement needs, but also provide services for third-party procurement and distribution

6. Based on "one name, two networks", we will keep a zero distance with users and quickly meet the personalized needs of users.

the Internet era is an era of information explosion, and Haier needs to use information to develop. Through this website, Haier can collect information and feedback from a large number of users. The trust and loyalty of these users to Haier is Haier's greatest wealth

2. 1. Unify channel management and reposition the focus of channel construction
at present, the channels and procts of most banks are connected by one line, and the technologies and user interfaces used are different. However, from the perspective of users, we hope to get a consistent experience from ATM, online banking, mobile banking, outlets, customer service centers and other channels. If this proct can only be provided through outlets and that proct can only be provided through ATM, the customer experience is only a single channel, which is difficult to form a sense of wholeness and is not concive to cross marketing of banks
therefore, it is suggested to unify the channel management in the organizational design, and unify the planning, design and collaborative management of multiple channels. In proct design and R & D, we should support multi-channel release and omni channel management, especially the mobile channel represented by smart phones as the main strategic channel in the future
2. In the design of procts and services, we should strengthen the interaction with users and pay attention to user feedback
in the Internet era, information is more open and transparent, and the cost of user transfer is lower. With the development of we media, users' reputation and evaluation are more effective than traditional advertising. When designing procts and providing services, banks should introce the iterative thinking of system construction in the field of Internet, pay attention to user experience feedback, respond positively, iterate quickly, wait for users to vote, and actively use new media and social channels to attract users to participate in business process and system construction
first, it is suggested to establish a user experience design post. Regular communication and selection mechanism should be adopted to give appropriate incentives to employees with excellent performance. On behalf of users, they feed back the proct experience to the demand and R & D departments, and put forward the construction and optimization requirements
the second is to establish user feedback and evaluation mechanism. Unify user feedback channels, design a unified user feedback platform, support text, screenshot, annotation, voice and other user direct feedback methods, and establish a bonus mechanism for valuable feedback information
the third is to actively use social media. In the stage of proct creativity and design, we can learn from Xiaomi's "rice noodle club" to attract users as fans, and let users participate in the design of procts and services, reflecting their respect for users and their sense of self realization
3. creates application scenarios, attaches importance to data collection and application.
Internet plus features are cross boundary, and Internet technology is combined with traditional instries. O2O is the main purpose of online and offline integration. The main purpose is to create application scenarios, embedding services into the scene, gathering users, collecting data, and then using data to feed back business.
in the bank's deposit, loan and foreign exchange business, the payment business is the most standard, mature and the first business that the third party intervenes in. To subvert the financial instry, Internet finance wants to form an ecosystem of "payment + account / user + big data + risk control and procts". In this shared and open ecosystem, all links can be basically completed under the environment and technology of the Internet. Payment is the infrastructure of this ecosystem, the cornerstone of Internet Finance and the focus of competition. With the help of smart phones, traditional banks can obtain users' geographic location, consumption situation, behavior preference, relationship network and other detailed information to provide more powerful information for risk control and proct innovation, which can be derived into credit, financial management and other proct fields
4. Attach great importance to the strategic position of informatization in bank transformation
the bank is the first instry to apply informatization, but so far, the simulation of manual operation process still accounts for a relatively high proportion in the informatization construction. In today's highly developed Internet, if we continue to take such a way, it is far from meeting the needs of modern bank operation
therefore, the bank must change its concept as soon as possible, position it as a strategic resource, apply the latest technology concepts and achievements, and reengineer its business process. Taking biometric technology as an example, through automatic recognition technology, the correct recognition rate reaches more than 99%, while the recognition rate of human eye is only 97%. Manual operation is not only costly, but also has potential moral hazard
most banks invest relatively high in network construction, equipment, operation and other fields every year, but there is a significant gap in the investment of scientific and technological personnel, especially in R & D human resources, compared with large Internet enterprises. The future competition is more reflected in the competition for talents, who are the important renewable resources. Therefore, to redefine the strategic positioning of science and technology in the bank, first of all, we should graally change the concept of investment, especially strengthen the investment in R & D human resources, enhance the proportion of R & D personnel in all employees, and establish a mechanism to attract and retain talents. Secondly, based on the talent pool, the business process and experts' knowledge and experience are solidified into it software procts through information system and data model, so as to continuously improve the proct construction and enhance the user experience
a good customer experience should be a pleasant experience for customers. In the Internet era, users have a stronger right to speak and choose, and those who get users get the world. With the development of new technologies such as cloud computing, mobile Internet, intelligent terminal and big data, as well as the change of customer group structure and the rapid development of mobile payment. It can be predicted that in ten years, most users will take online mobile financial services as the main body and offline services as the supplement. On line business is highly standardized and user-friendly, while off-line business is complex, and online and offline business cooperate with each other. Today, banks should work in this direction in channel construction, proct design, service provision, information construction, etc., which is also the way for banks to survive in the future. Otherwise, it will be abandoned by the market and users.

3. blockchain is a new application mode of distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm and other computer technologies. Blockchain is a shared distributed ledger in which transactions are permanently recorded through additional blocks. Blockchain is a historical record of all transactions, from the occurrence block to the latest block, so it is named blockchain.

4. Business process reengineering strategies and methods
in the global context, state-owned commercial banks must seize the opportunity to establish and improve business processes that adapt to the market and customers in the process of development. At the same time, e to the great differences between regions in China, state-owned commercial banks must deal with the challenges of customers in different regions and markets, Business process reengineering is not to develop a set of national unified business process, but different and different, but generally should solve the following problems:
starting from the value chain analysis, highlighting the core business process. From the perspective of value chain analysis, banks should focus on the contribution of activities and processes to customer value. For a bank, any process that does not contribute to procts or services is a non value-added process. For a business process, any activity that increases costs but does not contribute to process output is a non value-added activity. Business Process Reengineering of state-owned commercial banks must start with the analysis of value chain, highlight the core business process that is concive to the formation of core competitiveness, and outsource some low value-added business processes that can no longer reflect the leading edge, such as non-financial business, logistics, staff training, scientific and Technological Development and other business processes. The core competence of a bank is mainly its financing ability, proct innovation ability, sales ability and some unique service means. In the outsourcing of banking business, the external service company is no different from the "domestic service company" of the bank. It liberates the bank from many activities that are not very good at and ordinary transactional business, and focuses on the core business, thus avoiding the distraction of the bank's energy and financial resources
strengthen the study of logical relationship between processes and simplify business processes. Generally speaking, the fewer people involved in the process, the better. In the view of the process service object (customer), the simpler the better. Therefore, the state-owned commercial banks must strengthen the research on the logical relationship between single processes and simplify the business processes 1) Combine the separated and repeated processes. For example, the credit business process mentioned above can be replaced by customer evaluation, such as acceptance review, pre credit investigation, project evaluation, risk review, and so on. 2) Rece unnecessary review links. Still taking the credit business process as an example, we can implement the first level approval system, changing the level by level audit of sub branches, second level branches, first level branches and head office into "first level approval", that is, reporting directly to the organizations with approval authority for approval decision-making, thus greatly recing the approval process 3) Change the business process of sub proct into a package business process. For example, through the implementation of the customer manager system, we can train the customer manager, the customer service specialist, to take charge of the bank's traditional deposit, loan, intermediary business, international business and other businesses, and let the customer manager provide customers with integrated marketing and comprehensive financial services 4) The serial process is transformed into parallel process. Through the network and database technology, many activities that need to share resources, such as new proct development, credit evaluation, document reading, can be transformed into synchronous mode to improve the efficiency of the process
customer-oriented and diversified business processes. Further reform the business management system. The goal of banking management system reform should be a flat and moderately decentralized structure. On the basis of re establishing branches according to economic regions, the concept of strategic business unit (SBU) and the concept of division of labor and business process mode of front, middle and back platforms are introced. The front desk directly provides one-stop and all-round services for customers; The back office provides logistics support and centralized operation services for the whole bank At present, in the state-owned commercial banks, this function is generally incorporated into the background. In terms of organizational structure, we must embody the principle of customer classification as the center, and set up customer departments (strategic business entities) according to market positioning, such as retail banking department for small and medium-sized customers, private banking department for high-income class, commercial banking department for small and medium-sized enterprises, institutional banking department for large enterprises, etc; The establishment of other functional departments of the bank should be concive to the fastest response and disposal to the requirements of customer departments; In order to rece internal coordination and decision-making costs, the division of labor of senior managers is defined by specific customer groups (strategic business entities); At the same time, independent risk management department and internal audit department should be established. In the design of business process, we should distinguish different customer groups and different occasions, design different process versions, and do not have to be trivial, in order to simplify. The standardized process to deal with diversified consumers often can not meet the requirements of customers in terms of quality and time. Bank Reengineering emphasizes that banks should have flexibility in business processing. For example, in the acceptance of loan applications, we can design three risk categories: low, medium and high. After the initial credit audit, the low-risk customers can be handled by the low-risk process team in a more simplified and rapid way; For medium risk customers, the routine standardized proceres shall be followed; For high-risk customers, it is necessary for the high-risk process team to attach a special processing mechanism to analyze and study
benchmarking technology is applied to business process transformation. The so-called benchmarking is to take the practice of excellent enterprises in the same instry as the benchmark, creatively improve, and set the performance target of the enterprise according to the performance index of excellent enterprises, so as to obtain the huge improvement of enterprise performance. The state-owned commercial banks should find "the key factors behind the differences of market performance of different banks and different departments" through the comparative analysis of the operation proceres, business processes and activities of different western commercial banks. On the basis of reference and combined with the actual situation of China, the state-owned commercial banks should improve their business processes to realize the leap forward development after business process reengineering. Realize the quantification and automation of business process. In order to meet the needs of customers and strengthen risk analysis as the starting point, we should combine business management with marketing, establish and improve the electronic network system of various banking businesses, advocate and implement the concept and method of direct service with online banking and self-service banking as the main content, and vigorously develop the network market, Graally form from business to business (B-to-B) network commerce to personal to personal (p-to-p) e-commerce network field. In addition, we will graally establish a quantitative risk analysis and financial proct pricing model that can be automatically handled, establish an internal pricing and cost inversion mechanism, comprehensively monitor and manage various business operation risks by using quantitative specialized technology, improve the risk prevention responsibility system, and organically combine post restriction, responsibility restriction, procere restriction and other restriction mechanisms, Graally realize the balance of financial business risk and income
the application of information technology to the standardization and integration of bank management system transformation. An important feature of business process reengineering is to establish a process architecture based on information integration, which requires data source pushing and information sharing. Any data should be input by one department or one employee, and any other department or other employee does not need to input repeatedly. Only in this way can we rece repetitive work, improve efficiency and avoid mistakes. On this basis, the system can find out the source of information according to the password of the employee who entered the data, so that the responsibility is clear, which is also a necessary requirement of standardized management. The input data is calculated or processed according to certain rules and stored in the specified database, which can be immediately shared by all authorized personnel to achieve real-time and rapid response to environmental changes. Because all managers make decisions according to the same information source, they avoid conflicting decisions e to different information sources. For example, after a customer manager of a customer department enters the loan situation into the system, the accounting department does not need to re-enter it according to the relevant documents. Strengthen customer information management. In order to realize the standardization of customer management information, establish a unified customer database, improve the bank's IT architecture, realize the standardization and openness of the bank's customer management system, and have good scalability, integrate customer information, conct data mining and analysis, determine customer value and risk, and carry out hierarchical management for customers with different values and risks. Branches at all levels can set up specialized agencies or provide specialized talents to engage in customer information research and analysis according to specific conditions, because only by meeting customer needs and meeting or exceeding customer expectations can they bring more profits and customers. We should analyze and study the market structure, analyze the level of customers, research and develop financial procts from the perspective of market and customers, and formulate and launch new business varieties and services. At the same time, we should establish a unified customer service center and improve the after-sales service and financial proct defect remedy mechanism-

5. In recent years, the development of information technology constantly promotes the emergence of new management theory. The theory and practice of bank business process reengineering (BPR) is just under this background. Business process is a group of interrelated activities that create value for customers. Every enterprise operates through business process, and banks are no exception< As a matter of fact, e to the homogeneity of money and credit in bank operation, one of the most important differences between banks comes from their respective business processes, which has become one of the main factors to establish the competitive advantage of banks. Therefore, the issue of workflow has become the core of Bank Reengineering and the hot spot of research and practice. The correct implementation of business process reengineering is helpful to the implementation of BPR project in the bank, so that the operation efficiency of the bank is greatly improved, and the operation flexibility of the bank is improved
what is "business process" and "business process reengineering"
so far, there is no unified and authoritative definition of business process“ "Business process" is a foreign word, and its corresponding English has two words: "workflow" and "work flow". The former focuses on technical discussion, while the latter focuses on ideological research
the widely accepted definition is that business process is "work flow", which is a dynamic process of transfer or transfer between businesses. Business process reengineering is the optimization of this dynamic process. Its specific contents include process modeling, work item tracking, business restructuring, strengthening the relationship between various businesses, improving the ability of business process, etc

traditional banking business process and banking business process reengineering

banking business process is a series of activities and combinations in a certain order, with customer information and bank internal resource information as processing objects. In a complete business process, including internal or external customers, together constitute a complete function of providing some or several financial services for customers from beginning to end. The operation of the process needs a reasonable combination of personnel, data, technical resources and information system as a platform
following the traditional theory of division of labor, banks generally combine people engaged in the same or similar activities according to the same or similar activities to form functional groups. For a complete process, the work of each group is only one department, but for these departments, it is the whole of their work. In such a functional organization, from the perspective of a customer's needs, the complete business process is often fragmented. It not only leads to the specialization of bank staff's skills, becoming the subsidiary of a one-sided development machine, but also increases the communication work between various business departments, so the transaction cost increases greatly
in the era of financial regulation, in a relatively stable market environment, when financial procts are single and simple, and banking business emphasizes economies of scale, the harm of process fragmentation is not obvious. Then, with the advent of the era of information technology and financial liberalization, the competition in the financial field is becoming increasingly fierce, With the increasing comprehensiveness and complexity of financial procts, customers begin to become more selective. Banks need to understand customers more humanely, rather than find a large number of bank customers according to a popular standard. In this case, this fragmented banking business process framework is more and more difficult to meet the needs of the market
therefore, the bank business process reengineering arises at the historic moment. It directly aims at the fragmented business process, and its purpose is to rebuild a complete and efficient new process, that is, according to the customer category, the work originally scattered in various functional departments is reassembled according to the operation process that is most concive to customer value creation, So that banks can effectively adapt to the requirements of the market
in the process reengineering of banking business, it is the most challenging content to creatively use information technology to integrate the traditional work to the maximum extent, so as to make the business process completely transformed. With the help of modern information technology, bank reengineering needs to fundamentally rethink and redesign the existing process organization, establish a "customer-centered" business process, in order to make breakthroughs in cost, quality, customer satisfaction and response speed, and then have excellent performance in financial performance indicators and performance growth

the core of business process reengineering in banking

when identifying and evaluating business processes, the first thing to consider is not & quot; How to do what we are doing better in a better way;, It's & quot; Only in this way can we do things best;, Only in this way can we fundamentally rece the bloated and rendant business activities and greatly improve the efficiency of business operation
under this premise, it is necessary to reexamine whether the business process is reasonably designed and whether there is room for improvement. At this time, what we need most is to break the conventional thinking, and imagine its e process from scratch. In bank reengineering, the application of information technology is centered on the business process of the bank, involving all the organizational activities within the bank, rather than limited to a certain unit, which breaks the long-standing standard concept of division of labor
in order to improve the efficiency of banks, many banks are carrying out business process reengineering of internal and delivery channels. The centralization of management functions and the establishment of hub and spoke operation framework have greatly reced the number of personnel in bank branches. This reces the internal level of the bank, and enhances the cross and internal cooperation between different functions. The core links of business process reengineering are as follows:

1. To construct value-added business process based on customer orientation
firstly, from the perspective of value chain analysis, banks should focus on the value of activities and processes to customers. For a bank, any activity that does not contribute to procts and services is a non proliferative activity. For a business process, any process that increases costs but does not contribute to process output is a non proliferative process. These non proliferation activities and processes are unnecessary audit and supervision, as well as compromise and coordination. These activities have no added value to the bank and can be deleted completely to rece unnecessary manpower and time waste
secondly, business process design should not be limited to the original scope of the organization. In principle, it should go beyond the organizational boundaries and be flexibly adjusted in the most natural way. In the case of employing generalists rather than professionals, many cross departmental operations can be integrated. At present, with the help of the successful development of a set of sophisticated software system expert system, some banks have compressed the original activities of credit auditors, valuers and other professionals into the work of a trader, recing the transmission and repetition of activities and improving the efficiency of the process
in addition, business process design should adopt parallel rather than sequential mode as far as possible, which can make many shared activities, such as new proct development and credit evaluation, turn into synchronous mode through network and database technology

2. Take financial innovation as the center to create diversified business processes
when designing business processes, we should distinguish different customer groups and design different process versions for different occasions, instead of doing everything in detail to make it simple and complex. The standardized process to deal with diversified consumers often can not meet the requirements of customers in terms of quality and time. Bank Reengineering emphasizes that banks should have flexibility in business processing. For example, in the acceptance of loan applications, we can design the process of low, medium and high risk categories. After the initial credit audit, the low-risk customers can be handled by the low-risk process team in a more simplified and rapid way; For customers with moderate risk, routine standardized proceres shall be followed; For high-risk customers, it is necessary for the high-risk process team to attach a special processing mechanism to analyze and study<

3. Provide a single point of contact between the bank and customers
e to the complexity of financial procts, few customers can use a combination of vision to manage their money, and the usual counter business personnel are limited to their own division of functions, it is impossible to cross the Department to give advice for customers, back and forth, through the establishment of full-time sales staff, so that customers do not face many business counters, It only needs to contact with a single person, which improves the convenience of customers and helps banks to realize cross selling. The design of the new process should be able to provide customers with a comprehensive understanding of the financial information of the customer manager, even if the process is very complex and decentralized, customers can still get complete and rapid service
after the reform, the business process has the following characteristics: first, the work unit has changed, that is, from the functional department to the process execution group, and the business process is flexible; Second, the nature of work has changed, that is, from a simple task to a multi-faceted work, and the nature of work is diversified; Third, the values of employees have changed, that is, from maintenance type to pioneering type, with positive work attitude< The current account comprehensive banking system of Sumitomo Bank of Japan fully embodies the idea of banking business reengineering in the aspect of wholesale business. The system regards the bank's current customers, including their related enterprises and local legal persons of overseas institutions, as an enterprise group, and establishes a management system with customers as the main body. The bank no longer divides the work according to the traditional deposit, loan and settlement, but integrates the financial service functions of the bank and provides various financial services to customers comprehensively.
under this system, all businesses of the same customer should be centralized under the comprehensive management account of current customers. The members of the current account group have strong business ability. They should not only understand the deposit and loan business, but also understand the foreign exchange business. In addition, they should be responsible for providing customers with technical services such as fund dispatching, fund utilization, overseas development and so on. These members of the group are called all-round bank staff
in order to give full play to the function of the integrated management team of current customers, Sumitomo Bank also realized the integrated computer networking business of more than 10 overseas branches in 1992, so that all the information of the overseas branches of current enterprises can be grasped by the members of the integrated management team of current customers, forming a comprehensive information system to provide the most perfect services for customers

the role of network technology in banking business process reengineering

in the era of network economy, the overall strength of banking services will be embodied in the integrated service ability and integration skills of front desk business acceptance and back office data processing. The integration of network technology to banking business is not only to use the Internet as a channel for banks to deliver procts and services, but also to optimize the creation of backstage procts and services by using the Internet: to program unstructured processes to rece uncertainty; How to provide detailed information for process operation and improve scientific decision-making; How to implement knowledge management in the bank, obtain the expertise in the process, form the expert system, and improve the efficiency of the bank

6.

Process bank is the management mode of modern commercial bank, which is an all-round change of traditional bank concept, management and business. Facing the changes of Internet finance, interest rate marketization and other external environment, commercial banks must strengthen their own management innovation, business innovation and process innovation to adapt to the new market competition environment

eight principles should be followed in the process construction of banks:

1. All business of banks are given by customers, so they should be customer service-oriented and market-oriented

2. Starting from the carding, optimization and improvement of the bank's business processes

3. In the process area, it should include not only business process, but also management process and support process. All process systems need to be sorted, optimized and reengineered

In modern society, we should make full use of modern information technology for management

5. Consider the design and establishment of organizational structure based on process

6. Expand to other management systems based on process, optimize and improve accordingly

The establishment of the process aims at realizing the final development strategy of the bank

8. The bank transformation construction needs a good cultural atmosphere. If the bank is missing in this area, it needs to manage the cultural area well ring the transformation period

extended information:

the role of banks:

banks are money enterprises. Their existence facilitates the raising and financing of social funds. They are very important members of financial institutions

we can see that the banking business, on the one hand, collects idle money and small amount of money savings in the society by absorbing deposits, and then lends them to people who need to supplement money in the form of loans; Here, the bank acts as an intermediary between the lender and the borrower

On the other hand, the bank deals with the business of money collection, payment and settlement for commodity procers and merchants, and it also acts as a payment intermediary. In a word, the bank acts as a credit intermediary

The basic functions of commercial banks include: credit intermediary, payment intermediary, credit creation and financial services

7. The compliance work of commercial banks is mainly based on the guidelines for compliance risk management of commercial banks issued by CBRC (YJF [2006] No. 76)
under the management of the person in charge of compliance, the compliance management department should assist the senior management to effectively identify and manage the compliance risks faced by commercial banks, and perform the following basic responsibilities:
(1) continuously pay attention to the latest development of laws, rules and guidelines, correctly understand the provisions and spirit of laws, rules and guidelines, and accurately grasp the laws, regulations and standards The impact of rules and guidelines on the operation of commercial banks, and timely provide compliance suggestions to senior management
(2) develop and implement a risk-based compliance management plan, including the implementation and evaluation of specific policies and proceres, compliance risk assessment, compliance testing, compliance training and ecation, etc
(3) review and evaluate the compliance of various policies, proceres and operation guidelines of commercial banks, organize, coordinate and urge all business lines and internal control departments to sort out and revise various policies, proceres and operation guidelines, so as to ensure that all policies, proceres and operation guidelines meet the requirements of laws, rules and guidelines
(4) assist relevant training and ecation departments to conct compliance training for employees, including compliance training for new employees and regular compliance training for all employees, and become the internal liaison department for employees to consult on compliance issues
(5) organize the formulation of compliance management proceres, compliance manual, employee code of conct and other compliance guidelines, and evaluate the appropriateness of compliance management proceres and compliance guidelines, so as to provide guidance for employees to properly implement laws, rules and guidelines< (6) actively identify and assess the compliance risks related to the business activities of commercial banks, including providing necessary compliance audit and testing for the development of new procts and new businesses, identifying and assessing the compliance risks arising from the expansion of new business modes, the establishment of new customer relationships, and significant changes in the nature of customer relationships< (7) collect and screen data that may indicate potential compliance problems, such as the growth of consumer complaints, abnormal transactions, etc., establish compliance risk monitoring indicators, measure the possibility and impact of compliance risks according to the risk matrix, and determine the priority sequence of compliance risks
(8) implement adequate and representative compliance risk assessment and testing, including testing the compliance of various policies and proceres through on-site audit, inquiring about the defects of policies and proceres, and concting corresponding investigation. The compliance test results should be reported upward through the compliance risk reporting route in accordance with the internal risk management proceres of commercial banks, To ensure that policies and proceres comply with the requirements of laws, rules and guidelines
(9) keep in touch with the regulatory authorities, track and evaluate the implementation of regulatory opinions and requirements.

8.

Compliance risk of commercial banks is also known as compliance risk. "Compliance risk" refers to the risk that banks may suffer legal or regulatory penalties, major financial losses or reputation losses e to their failure to comply with laws and regulations, regulatory requirements, rules, relevant standards formulated by self regulatory organizations, and code of conct applicable to their own business activities

compliance risk mainly focuses on the economic or reputation loss caused by the bank's dominant violation of laws, regulations and regulatory rules for various reasons. This kind of risk is more serious and causes more losses

compliance risk management refers to that banks take the initiative to avoid the occurrence of violations, actively find and take appropriate measures to correct the violations that have occurred, and their job manuals are also a cyclical process of continuous revision of relevant systems and corresponding practices. This process of compliance risk management is the basis and core of building an effective internal control mechanism of banks

extended data:

commercial banks can build compliance risk management mechanism from the following aspects:

first, establish active compliance awareness and overcome passive compliance psychology

compliance is not only the basic internal demand for the stable operation of the banking instry, but also an important part of the banking culture

Secondly, formulate compliance policies and set up compliance department

the compliance department is an independent functional department that supports and assists the senior management of the bank to do a good job in compliance risk management. The front-line business department is directly responsible for compliance, and the senior management is ultimately responsible for the compliance operation of the bank

to build the compliance risk management mechanism of commercial banks, it is necessary to set up a full-time compliance department, and ensure that the compliance department finds and investigates problems without interference, so that the compliance personnel can participate in the reengineering process of the bank's organizational structure and business process in a timely manner, so that the principle of legal compliance management can be truly implemented in every link and even every employee of the business process

At the same time, it is necessary to formulate and approve an effective compliance policy in line with the characteristics of commercial banks, which is the programmatic document of bank compliance risk management; By accumulating experience from practice, an effective operation mechanism for managing compliance risk and a fundamental solution for managing operational risk are explored

Third, establish the supervision mechanism of reporting

in order to build up the awareness of operating in accordance with the law and controlling compliance risks among employees, it is necessary to establish a reporting supervision mechanism, provide necessary channels and channels for employees to report violations, and establish an effective reporting protection and incentive mechanism

Fourthly, establish risk assessment mechanism

it is necessary to establish and improve the risk identification and evaluation system as soon as possible, seriously learn from the advanced international experience, actively use modern scientific and technological means, establish and improve the monitoring, evaluation and early warning system covering all business risks, pay attention to early warning, and seriously implement the major breach of contract registration and risk warning system

Fifthly, the compliance risk management mechanism should be established on the basis of "process bank"

we should thoroughly break the "departmental bank" system which has been inherited for many years in the stable and closed market environment and formed in the period of planned economy with single financial procts, break the departmental risk management mode of segmenting each department and managing each department for a period, effectively avoid the phenomenon of self governance and mutual wrangling,

we should establish a unified closed process with customer demand as the center, Optimize and streamline business processes based on the principle of serving customers well and controlling various risks including compliance risks

9. The emergence and development of online banking has promoted the reengineering of banking business process, optimized the business process, reced transaction costs, changed the information asymmetry of all parties involved in financial activities to a certain extent, and provided more effective support and greater development space for the development of the network. The virtualization of banking business breaks through the business model, values and management of the traditional banking instry, changes the competition pattern of the existing banking instry, and forms a new organizational form of the banking instry. As a result, the traditional role of banking institutions has been further changed, and the financial risk has become more complex and spreading, which brings new issues and challenges to bank management and external supervision< First, online banking will change the competition pattern of traditional banks. In the past, the competition in the financial instry was mainly reflected in the scale of assets, the number of outlets and the number of employees of financial institutions. In the network economy, regardless of the size of financial institutions, they are equal on the network. Large, medium and small financial institutions will compete on the same starting line. The branch network and employees of traditional commercial banks have graally become a heavy burden for banks to expand their business, The competition in the financial instry will be mainly the competition in the function of financial procts and the quality of financial services. Many financial institutions will have the opportunity to rebuild their position by using their excellent services on the Internet. Small and medium-sized financial institutions can seize the business opportunities by virtue of their technical advantages and win the customer resources and competitive advantages that are difficult to obtain in the traditional financial era< Second, online banking will change the business model of traditional banking. The application of network information technology in the banking instry has broken the geographical and time restrictions of traditional banking business. On the one hand, banks can operate continuously all day, absorb local, domestic and even foreign customers, and collect, process and apply a large amount of information at near real-time speed, so that financial institutions can develop new customer groups in a wider region and scope, Open up new sources of profit. In this way, the bank's business strategy can no longer be limited to a certain market, and its competitors are no longer limited to a few banks. Any bank, even a very distant financial institution, can become a potential competitor. Compared with the traditional banking instry, the operating cost of online banking is lower, and the interest margin is greatly reced. Banks can no longer rely on the scale of funds, network advantages or other monopoly advantages to make profits, banks must change the traditional pricing strategy< Third, online banking increases the difficulty of risk management in banking instry. The application of information technology makes the risk of network and bank collapse cross instry and outsider. Cross instry is the risk beyond the traditional sense of the concept of financial risk. Risk not only comes from the fluctuation of market price and the quality of economic growth, but also from the reliability of software and hardware configuration and technical equipment. Technical risk has become an important feature of online banking business risk. The externality of online banking is the main feature of technical risk itself. Due to the existence of the above risk problems, in recent years, in some countries, customers worried about safety, service quality and other issues, and the trend of accepting online financial services was not obvious. Many banks only regard the development of online banking business as a means to retain customers and improve the image of banks, not as a profit center< Fourth, the rise of online banking has increased the difficulty of supervision. Only from the perspective of the connotation and attributes of online banking business, online banking has new risk characteristics, which has changed the traditional way of providing banking business and the existing form of banking operation, and requires banking regulatory authorities to make corresponding adjustments in terms of regulatory content, means and methods. First of all, the regulatory authorities will have to pay more attention to the technical risk of bank operation, that is, the security assessment, while evaluating the business risk of banking institutions; Secondly, the procts provided by banks to customers are further integrated, the degree of cross between banking, securities and insurance is deepened, the difficulty of separate management is increased, and the boundary of supervision is more blurred; Thirdly, a large number of transactions from tangible to intangible, paper vouchers are graally replaced by vouchers, transaction frequency increases, transaction volume increases, the traditional way of supervision will be difficult to evaluate the risk, legitimacy and compliance of the transaction< In particular, the application of Internet technology has further broken the regional and instrial boundaries of banking business. On the one hand, cross regional and cross-border operation will become more convenient. Customers in any place can choose banks in other places that cannot be selected under traditional conditions, and any bank may provide banking services to customers that cannot be contacted under traditional conditions; On the other hand, non-financial institutions, such as Internet companies or business groups, can provide banking services for their customers with the help of their own technical advantages or business and customer advantages. This will directly change the content of the financial system structure of a country or region. For some regions or small countries, there is the possibility that they do not need to have their own financial system. They can completely rely on the selection of large international financial institutions to provide cross-border services

in addition, online banking also provides a carrier for mixed operation, promotes a new mode of cooperation among banking, securities instry and insurance instry, and has a certain impact on the separate operation mode and the existing regulatory framework system. All of these increase the difficulty of financial instry and supervision

for China, the development of online banking is still facing the following challenges. First of all, China's banking system is not perfect, there are still many problems to be solved. There are some risks in the development of online banking on the basis of traditional banking management experience. Secondly, our country lacks a good market environment for the development of online banking, credit system is not perfect, lack of credit evaluation institutions, people's credit awareness is relatively weak, and the payment method is still cash based. Thirdly, there is a lack of legal framework to ensure the effective development of online banking and business activities in China. Some basic laws and regulations, such as the e-commerce law, have not yet been issued. The validity of e-vouchers and the legitimacy of digital signatures have not yet been solved. Finally, there is a lack of comprehensive management talents of Chinese banks and e-banking supervision talents of regulatory authorities, which account for the main body of China's banking instry. Business personnel and supervisors do not fully understand online banking, and the existing business experience and management system can not meet the needs of the development of online banking business. At present, most of the Chinese banks which start the online banking business generally emphasize the development of the business and neglect the evaluation and management of the security of the online banking business, which is a great hidden danger for the Chinese banks to develop the online banking<

the Countermeasures for the banking regulatory authorities to develop and supervise online banking

challenges mean opportunities. The development of Internet banking is a good opportunity to rebuild the traditional relatively inefficient management mode of China's banking instry, improve the service quality, enhance the overall competitiveness and realize the leap forward development; The development of Internet banking will help China's banking instry speed up the process of internationalization and approach the international level

the banking regulatory authorities fully realize the importance of the development of online banking to the banking instry, and also recognize the problems existing in China's banking system. Considering that online banking is a new thing, before fully mastering the development of online banking, it is important to develop it first, "cross the river by feeling the stone", find problems in the development and solve problems in the development. From the actual situation, the banking regulatory authorities have adopted the following three strategies for the development and supervision of China's online banking in recent years< (1) market access supervision of Internet banking should be carried out according to the principle of active and prudent supervision, Only the pure virtual bank is subject to market access audit. After careful consideration, China's banking regulatory authorities have incorporated the new online banking business of existing banks into the market access system. Mainly considering the unique risk connotation and manifestation of online banking business, the market access supervision of online banking business and the security evaluation of the information system of online banking business will help to improve the bank's risk management ability of online banking business and promote the steady development of online banking business. In the specific audit process, the regulatory authorities follow the principle of active and prudent audit. On the one hand, encourage commercial banks to carry out mechanism reengineering and develop online banking business; On the other hand, the bank's ability to run online banking business is strictly reviewed, and the security of the bank's online banking business operation system is strictly evaluated< (2) strengthen the research and policy-making on the development and supervision of Internet banking

based on the principle of active prudence, in June 2001, the banking regulatory authority formulated and issued the Interim Measures for the management of Internet banking business, stipulating the access conditions and risk management requirements for commercial banks to start internet banking business; In April 2002, a notice was issued to implement the measures, which further improved the regulatory requirements for commercial banks to operate online banking business. In April 2002, the banking regulatory authorities set up the "working group on the development and supervision of Internet banking" to make full use of the power of experts from all walks of life to study and formulate policies for the development and supervision of Internet banking. At present, the regulatory authorities are studying and formulating the "guidelines for the safety assessment of online banking", which puts forward more systematic and specific requirements for the safety of commercial banks in opening online banking business; Special research on key and difficult issues such as cross-border banking supervision of online banking business and electronic voucher of online banking business; At the same time, a research group is set up to study and design the regulatory framework for online banking by fully drawing on international best practices and existing research results< (3) to strengthen the training of bank supervisors and Commercial Bank practitioners, the lack of talents is a major constraint to the development of online banking in China's banking instry, and the key to promote the steady development of online banking in China is to cultivate a group of comprehensive professionals who master the risk management and management of online banking. In view of the lack of awareness of online banking among bank regulators, the banking regulatory authorities did not rush to conct on-site inspection of online banking business, but first organized systematic online banking risk supervision training nationwide. At the same time, through different forms, commercial banks are required to pay attention to the training of business personnel. In order to meet the needs of training, the banking regulatory department has also organized human resources to compile the principles and practice of risk supervision of online banking and the knowledge book of online banking for financial cadres, fully drawing on the research results and beneficial experience of the development and supervision of online banking at home and abroad, introcing the development status and trend, risk characteristics and management requirements of online banking, This paper introces the supervision methods and tools of online banking, so as to popularize the knowledge of online banking and e-commerce, and improve the supervision ability of supervisors and the risk management ability of business personnel of commercial banks

of course, to achieve