Abstract：Evidences show that the market risk and the credit risk in many cases are initiated by the operational risk. Taking a state-owned bank as an example, this paper explores the status quo, measures and control of operational risk in Chinese retails banks’ services. It finds the frequencies and the loss amounts operational risk events induced by personal operations are comparatively high; meanwhile it estimates the accrual risk capital using an adjusted loss distribution approach. Finally, the paper presents suggestions on how to control the operational risks.
2012, Vol. 9 
