Identification and Prevention of Commercial Bank Operational Risk based on Fault Tree Analysis Method

In recent years, the operational risk of commercial banks have brought events of huge losses and commercial bank failures have occurred sometimes, and some of them have tremendous effect. Therefore, it is necessary to strengthen the control and identify of the operational risk of commercial banks. Most academicians have used loss event database method, scenario analysis method, and flow chart method to identify operational risk, but few analyze the roots of operational risks. According to the analysis of causes of operational risk in domestic commercial banks in the paper, we apply fault tree method to analyze the most important incentive which leads to the appearance of operational risk in commercial banks, and in term of the analysis results to identify the operational risk in commercial banks and put forward relevant preventive measures.