Operational risk in investment transactions refers to

1. Operational risk refers to the risk caused by the imperfection or failure of internal processes, manpower, systems and external events of a trading institution. In the process of derivatives trading, although the frequency of operational risk is very low, once it occurs, it will cause huge losses to trading institutions and even endanger their survival. Such cases are common: 1995, Bahrain Bank (loss1300 million US dollars) went bankrupt because traders concealed losses in secret accounts; 1997 National Westminster Bank (loss of $65,438+$27 million) closed down because traders lied about prices and deliberately covered up losses, and was finally taken over by Royal Bank of Scotland; In 2008, Socié té Gé né rale (loss of 4.9 billion euros) was discredited because of the losses caused by traders crossing the supervision to establish secret positions. The accident cost is huge, so it is of great significance to strengthen operational risk management when institutions participate in OTC derivatives trading.

2. Operational risks are difficult to quantify and cannot be accurately measured. Generally speaking, there are two evaluation methods. One is the top-down model, that is, on a broader level, the data of companies or industries are used to estimate operational risks, and the results are used to determine the capital needed to buffer risks, and then the capital is allocated among industries or departments. There is also a bottom-up model, which starts from the level of a single business department or process and summarizes the measurement results to judge the risk status of the organization. This method helps to better check the causes of operational risks. The above two methods can estimate the frequency and severity distribution of losses based on historical data through the risk actuarial model, so as to objectively estimate the loss distribution caused by operational risks, which can be used as a reference for the decision-making level of financial institutions.

Usually, multiple supervision and control measures are taken to reduce operational risks, and good prevention in advance and monitoring in the event are far more effective than remedial measures afterwards.

First, establish a reasonable organizational structure system and business process of OTC derivatives trading, so as to separate the front, middle and back office posts and functions, with clear process, double proofreading, post preparation supervision, data archiving and backup, and introduce internal and external audits to provide information and suggestions for potential weak links in the organizational structure and business process.

Second, establish a reasonable human resource management mechanism, establish an assessment and incentive mechanism, attract and stabilize professionals with OTC derivatives trading qualifications, and conduct regular or irregular training, so that managers and operators can always keep up with the needs of OTC derivatives trading and have corresponding professional knowledge, risk awareness and handling skills.

Third, the introduction of scientific and advanced risk management system, the general risk management system needs to have information management, transaction records, risk management, account clearing and other functional modules. , which can meet the business needs of the front, middle and back offices at the same time, so as to strengthen the monitoring of the development process of OTC derivatives business, effectively improve the risk management ability in the process of OTC derivatives business, and be traceable and well documented. Fourth, relevant OTC derivatives trading agreements have been signed with counterparties. Under the leadership of the China Securities Association, China Securities Association, China Foundation Association and other upper-level regulatory associations, the main agreement and supplementary agreement on OTC derivatives trading in China securities and futures market have been issued, which can be used as legal agreements to guide and standardize OTC derivatives cooperation, protect the rights and interests of all parties to the transaction and reduce operational risks.