The Research on the Identification and Control about Operational Risk for Commercial Banks Based on FTA Method

Operational risk management is an extremely important risk management component of risk management for commercial banks. But because of the complex causes and numerous impact factors about operational risk, it is rather difficulty to achieve effectively the risk identification and control. The paper would employ FTA (Fault Tree Analysis) method which is in system reliability theory to analyze the operational risk factors and the formation process with quantitative and qualitative methods. Furthermore, the paper would establish the risk fault tree for commercial banks and analyze the failure criticality of key risk factors to get the probability of the occurrence of risk events. The research on the application about FTA analysis method to operational risk would provide effectively important reference about the prevention and control of operational risk for commercial banks.