Reporters learned from CCB recently that as a listed public corporation with investors throughout the world, CCB has always been attaching great importance to risk management. CCB has been carried out the risk management system reform throughout the entire bank this year. While paying close attention to the reform of the bank itself, CCB also tried to learn and absorb the advanced management experiences from foreign countries to lay a solid foundation for the improvement of risk management throughout the entire bank.

It is introduced that recently CCB invited Former Chief Risk Officer Mark Lawrence of Australia and New Zealand Banking Group Limited (ANZ) to hold a two-phase special training for risk management of commercial banks throughout the entire bank. Mark Lawrence was ever the member of the Leadership Committee on Capital Supervision of Washington Institute for International Finance and the senior expert in the international financial risk management industry. The training covered a number of areas including best practices and latest progress on risk management of active international banks, credibility, market, management of operational risk and risk measurement and risk management theories and practices for commercial banks. The related departments in CCB headquarters attended the training on spot and the first-level branches and the second-level branches (if conditions permit) received video instructions.

In order to improve the effect of training, the theme discussions were held when the video training ended from the headquarters to branches. By way of the interaction and feedback mechanism during the training, the branches reported those comparatively concentrative questions to the headquarters, then to the teacher. These questions were then discussed in the next class. In this way, the training fulfilled its expected goals.

The concerned officer of CCB told reporters that it is the first time for CCB to hold such large-scale, high-quality and special lectures on risk management by borrowing “foreign brain”, which indicates that CCB board of directors and management team attach great importance to risk management. The introduction of practices and experiences on risk management by international commercial banks increased the knowledge of CCB employees on risk culture that is of important and realistic significance to the cultivation of risk management culture suited to its own unique features, complying with its development goals, and recognized and practiced by all employees. The training not only enabled CCB employees to gain a comparatively comprehensive knowledge on the risk management practices by active international banks but also allowed them to see the gap between CCB and advanced international commercial banks in terms of risk management. More importantly, the training deepened their understanding on the methods and tools on credibility, market and management of operational risk in the international financial industry. It also brought useful ideas for CCB to properly guide and promote the risk management work in the future.

Inviting the foreign expert to give lectures enabled CCB employees in the field of risk management to receive high quality and professional training. This is also a direction that CCB has always been adhering to. In recent years CCB has been conducting frequent communications and exchanges with the international financial industry on risk management. Since last year CCB invited experts from international well-known banks and special consulting institutions as Bank of America, KfW, Moody and Ernst &Young to hold seminars and symposiums on risk management. By Learning experiences from foreign countries, CCB effectively upgraded the risk management level of CCB.

It is introduced that to satisfy new requirements on risk management by modern financial corporation system, CCB has adopted a series of measures in recent years including the reform of risk management system, process optimization, technical innovation and internal control and these measures achieved good effect. First, CCB is steadily promoting the reform in risk management system. CCB held a meeting on the reform in risk management system in March this year to clarify the direction of risk management reform. CCB released the reform plan and supporting measures, made preparations for the setup of risk director and officer and promoted the smooth reform in risk management system reform featuring vertical management and parallel operation. Second, CCB focused upon improving the market competition ability, tracking the market changes, adapting itself to the requirements of business, adjusting and optimizing the credit approval and authorization management. Under the precondition of risk controllability, differentiated authorized line of credit should be set up for strategically selected regions, products and clients so as to guarantee strategic development priorities and the quality of newly issued loans. Third, CCB established a credit risk warning, monitoring and alerting system among clients, industry and areas so as to prevent and mitigate credit risks. Fourth, CCB strengthened the ability to confront with risks. Aiming at the fast-growing off-balance-sheet business and existing hidden risk potentials, CCB took quick remedy measures and put forward a development strategy featuring of controlling aggregate volume and optimizing structure. CCB also put a special emphasis on the standardized operation from the perspective of internal management to promote the healthy development. Fifth, CCB made achievements on credit risks measurement and optimized the rating warning system in terms of practicability, accuracy, sensitivity and stability. The ability of CCB to quantitatively manage risks was also enhanced.