Abstract

What causes Barings Bank event and Societe Generale event is a typical bank operational risk. It is the defects in internal management that lead to such a grave result. The Compliance and the Compliance Functioning Bank should be regarded as the guidance for internal risks management in financial institutions. What it emphasizes on is to make financial institutions pay more attentions on internal risks management and strict and effective executions for the sake of risks control. By designing more perfect management system, financial institutions can stop the emergence of operational risks. Besides, enhance the construction of compliance culture and devoting-to-work culture in financial institutions. Meanwhile, financial institutions should improve mutual cooperation and communication so that they can find out illegal affairs immediately.

This work is licensed under a Creative Commons Attribution 4.0 License.