With the constant changes of customers' ideas and demands, the increasingly complex financial risks, the increasingly strict requirements of bank supervision and the increasingly fierce financial competition environment, bankers in today's world need to carefully identify the risks in business operations from a more comprehensive and clear perspective than ever before. In view of the present situation of the risk management mechanism of Agricultural Bank, we should strengthen the risk management of Agricultural Bank from the following aspects, improve the scientific risk management organization system, and gradually realize the horizontal extension and vertical management of risk management; Cultivate a new risk management culture and accelerate the establishment of a high-quality risk management team; Establish an effective risk early warning mechanism to change superficial risk judgment and lagging risk response; Improve the level of risk measurement; Improve risk control methods; Use a variety of risk coping strategies, including keyword risk management such as avoidance, dispersion, transfer and inhibition; Organizational system; Risk management culture; Agricultural Bank Agricultural Bank, as one of the four major state-owned commercial banks that occupy an important position in China's banking industry, implemented share reform to improve its management level. The only way to establish a modern banking system. In the process of share reform, it is bound to be accompanied by comprehensive innovation of internal operation mechanism and management mode, and perfecting risk management mechanism is an important part of it. At present, there is still a big gap between the risk management level of China Agricultural Bank and the requirements of modern commercial banks. In my opinion, to improve the risk management mechanism of Agricultural Bank of China, we should mainly start from the following aspects. Improve the risk management organization system. The biggest feature of the risk management system of modern commercial banks is verticalization, but at present, the risk management system of Agricultural Bank of China is divided into behavioral business units, and its risk management system is mainly horizontal, which is not conducive to the improvement of risk management efficiency. Perfecting the risk management organization system can be adjusted from two levels. First, it can adapt to the changes in the ownership structure of commercial banks at the level of risk management decision-making, and gradually establish risks under the management of the board of directors on the basis of establishing a scientific corporate governance structure. The organizational structure of the management establishes a risk management committee independent of the management at the head office level, which is composed of the person in charge of the risk management system and experts. The chairman of the Committee is the chief risk management supervisor of the whole bank, responsible for formulating the risk control standards and risk management plans of the whole bank, improving the risk management control system, making judgments and decisions, supervising the control of credit risk, market risk, operational risk and other risks by the senior management, regularly evaluating the risk management status, risk tolerance and level of the whole bank, and making suggestions on improving the risk management and internal control of the bank. The second is to change the administrative management mode at the implementation level of risk management and gradually realize the horizontal extension of risk management. On the basis of matrix management, vertical management flattens the management process, and the risk management department of the superior bank directly manages and assesses the heads of the risk management departments of the subordinate banks and the heads of the risk management windows of the business departments at the same level. The risk managers and risk window managers of the subordinate banks comprehensively monitor and implement the risk management policies of the Head Office in the areas and fields under their jurisdiction, including the establishment of operating institutions, the promotion of risk management tools, quantitative evaluation and analysis reports, etc. For the benefit of the Risk Management Department of the Head Office. At the same time, in order to ensure the effective implementation of matrix vertical management, a series of related supporting systems should be established, including the implementation of risk manager system and risk reporting system, effective monitoring of all business processes and key risk points, timely early warning and reporting of major risk events, ensuring that the "four eyes" principle can be reflected in any link of business processes and truly realizing three changes in the focus of risk management. That is, from actual risk to potential risk, from after-the-fact disposal of risk to prior control of risk, from management of risky assets to management of asset risk. In addition, the risk management department must maintain a certain degree of independence. Risk takers cannot be risk monitors at the same time, and risk monitoring must be separated. The risk management department should undertake the responsibilities of parallel restraint and behavior supervision relatively independently from the business department, thus forming effective checks and balances and restraining the excessive pursuit of business opportunities. In order to achieve effective checks and balances, risk management executives can be dispatched, that is, the head office sends risk executives to provincial branches and provincial branches send risk executives to secondary branches. The appointment, removal, performance appraisal and salary distribution of risk executives are decided by the superior bank and are not restricted by the resident bank. To cultivate a new risk management culture, there is no risk control without scientific risk management concept, and countless examples have also proved this point. In many cases in which financial institutions fail due to improper risk control in the world, the reason is often not the lack of risk control mechanism, but mainly the employees' weak awareness of risk management. Therefore, it is very important to establish a scientific risk management concept and build a strong risk culture from top to bottom. Formulate various internal rules and regulations, issue risk guidelines for various business products and operation processes, clearly indicate risk points and prevention points, cultivate all staff's sensitivity and understanding of risks through extensive risk education and scientific risk assessment, and run risk awareness through all staff's conscious actions, so as to promote the concept of risk management to be deeply rooted in the organizational culture of commercial banks, that is, to integrate into the business philosophy, risk management concept and risk management behavior of modern commercial banks. Integrating risk ethics standards with risk management environment and other factors, establishing an all-round risk management concept covering all departments, businesses and products, and promoting the cultural force of the whole process risk management behavior covering pre-monitoring, in-process management and post-disposal, should make the whole bank realize that as long as commercial banks continue to operate asset-liability business, they will always face various risks and even bankruptcy. Risk of Bankruptcy All bank employees in any position should have a sense of risk prevention. Any employee should consciously consider the risk factors in everything and minimize the risk as much as possible. At the same time, it is necessary to speed up the establishment of risk management teams and improve their quality. On the one hand, actively introduce foreign senior risk management talents, and promote the development of risk management of the whole bank through their mature concepts and technologies. On the other hand, in order to cultivate talents based on themselves, we should give full play to the role of the internal network, establish a risk management knowledge learning website, update the learning content in time, designate some risk management experts to answer the questions encountered by risk managers on the Internet regularly, provide them with an open training platform, and send senior managers to international advanced commercial banks to study and inspect, focusing on learning advanced foreign risks. Management concept and advanced risk measurement technology training can not form a system of "cold and hot" and take it as a long-term development strategy. Third, establish an effective risk early warning mechanism. The credit risk early warning mechanism is a mechanism for modern commercial banks to identify and judge the risk signals that affect asset safety in advance, and put forward the methods to prevent and resolve the risk signals. Only through effective and scientific risk management technology, establish an effective risk early warning mechanism and reduce the related risks in business activities, can we maximize the benefits. The establishment and application of risk early warning system will change the superficial risk judgment and lagging risk response under the traditional management mode and effectively prevent all kinds of risks. Macroscopically, the head office should organize high-level talents to seriously study the national macroeconomic and financial policies, pay close attention to the changes in the international financial market, and pay attention to strengthening long-term and long-term cooperation with different industries. In-depth study, understanding and mastering the basic characteristics, development trends and main risk factors of different industries, based on the analysis of macroeconomic policies, regional economic policies, market supply and demand relations and customer conditions, establish basic files for risk analysis of credit asset industries, regions, varieties and group customers, and regularly make early warning reports to some industries or regions through information exchange channels established with various departments, industries and media to determine high-risk industries and high-risk regions. Forward-looking put forward the key support and exit targets, publish the national industry loan limit and the total regional credit, and solve the loan risk problem caused by the information asymmetry that grassroots banks concentrate their loans on a declining industry. It is necessary to design a reasonable risk management index system that comprehensively covers the changes in assets and liabilities, large capital flows, capital settlement and operating efficiency information, and play a role in risk early warning. At the same time, before developing new products and new businesses, we should fully identify and carefully evaluate the risks involved, establish corresponding internal approval, operation and risk management procedures, clarify the key points of risk prevention, and make "precautions". At the micro level, we should establish and improve early warning signals including financial statements, operating conditions and the relationship between enterprises and banks. Early warning mechanisms such as managers' early warning signals can keenly capture the risk points through some signals when risks appear, and take targeted measures to nip risks in the bud. Account managers at all levels should often go deep into the enterprise, strengthen communication with customers, pay attention to the development of the enterprise, monitor the capital trend of the enterprise, understand the operation situation of the enterprise, analyze the problems existing in the operation process, find the early warning signals of risks, and take measures to control and avoid risks as soon as possible. At the same time, through the credit management system, strengthen online monitoring, monitor the recovery of due loans and the quality of credit assets, and find and deal with the potential risks of credit customers as soon as possible. Fourth, improve the level of risk measurement. Through the investigation of popular models of international banking, it is not difficult to find the following development trends of bank risk management models: first, qualitative analysis will be transformed into quantitative analysis, indexation form will be transformed into model form or a combination of the two, and single asset analysis will be transformed into portfolio analysis; Second, the trend of applying the latest research results of modern financial theory, such as the application of option pricing theory, capital asset pricing theory and modern portfolio theory; Third, the trend of absorbing the latest research results in related fields, such as econometric methods, actuarial methods, optimization theory, simulation technology, etc. Fourth, the trend of using modern computers to process information and network technology in large capacity. Statistical analysis of the actual default rate and loss degree of different credit rating businesses based on historical data is an important means to test the objectivity of risk management results. However, due to the short time of risk management of Agricultural Bank of China, the work in this field still lags behind, and China is a developing country. There is still a big gap between management and developed countries. Many enterprises (especially small and medium-sized enterprises) cannot collect financial data, and the financial data published by some large enterprises are distorted. Therefore, ABC should actively create conditions to establish relevant database information, including customers' credit information, and at the same time use traditional models such as credit scoring method to measure credit risk and strengthen the classified management of five-level loans. Historical default rate data and financial market data. And cooperate with relevant government departments and scientific research institutions to improve relevant modern risk management models or develop new risk measurement models such as credit evaluation model, bankruptcy prediction model and product pricing model. Gradually use modern risk management methods to decompose and analyze the risk factors in various businesses and products according to the nature of the bank's business. Scale and Complexity Select appropriate and generally accepted measurement methods for different types of risks, calculate quantifiable risks as accurately as possible and evaluate risks that are difficult to quantify, supplemented by other analytical means such as stress testing. V. Improve risk control measures. The first is to improve the internal control system. The Head Office shall issue risk management guidelines for various businesses, including operational risks of counter personnel and legal risks of banking business. Risk guidelines for new business products, etc. List the risk content, refine the risk standard, let every employee know the risk points and preventive measures of his work, strictly control risks, and pay attention to strengthening the update and improvement of business systems, especially the launch of new businesses and products, which should be accompanied by wind control and methods to restrain people. At the same time, managers should seriously investigate the responsibility of violators. Second, improve the level of risk monitoring. In risk management, on-site inspection and off-site monitoring should be comprehensively used to realize complementary advantages and improve the overall efficiency of risk management. In off-site monitoring, an efficient off-site monitoring network should be established to improve the depth, breadth, frequency and accuracy of information acquisition and provide sufficient basis for risk management. Third, improve credit management. At the same time of qualitative analysis, some more mature and scientific mathematical analysis models suitable for ABC are gradually embedded into credit risk management. Through the continuous testing of important financial variables of enterprises, we should grasp the future income trend of borrowing enterprises, reduce credit risk, establish a scientific loan decision-making mechanism, further improve the rules of procedure of the loan review meeting, and take the risk of the project reviewed by the loan review meeting as an important standard to measure the working ability of the members of the loan review meeting. If the members of the loan review Committee have poor decision-making ability, they should be urged to leave the loan review Committee and introduce "outside brains" when necessary. Invite relevant technical experts to participate in decision-making, make a decision on whether to lend or not, and improve the overall quality and decision-making level of the members of the loan review Committee. Fourth, improve the audit system, establish an independent, vertical and authoritative internal audit department, and implement the audit stationed system, that is, the head office reports to provincial branches, and provincial branches send auditors to secondary branches to audit the operation and management of subordinate banks. Auditors do not accept the leadership of the bank, but directly accept the assessment of the higher audit department. At the same time, the audit procedures are constantly improving. Improve audit methods, improve audit effect, and give full play to the supervisory role of audit in risk management. Fifth, implement economic capital management, take economic capital as the leading indicator and core indicator of business planning, guide the effective allocation of credit resources, strengthen the constraints on the total amount of risk assets, especially the total amount of newly added risk assets, and control the risk level of the whole bank with capital constraints. Sixth, flexible use of risk coping strategies. Bank risks are everywhere. Inevitably, ABC can reduce risks by flexibly using some risk coping strategies. The primary purpose of risk control is to avoid risk strategies. Taking into account the existence and possibility of risk events, take measures in advance to avoid risk factors or voluntarily give up or refuse to implement plans that may lead to risk losses. In terms of loans, we should conscientiously do due diligence before lending, scientifically evaluate the value of loan collateral, avoid loan losses caused by insufficient collateral or difficulties in resale, pay attention to the matching of loan term and debt term, set scientific medium and long-term loan control indicators, and prevent medium and long-term loans. Excessive issuance of long-term loans leads to the coexistence of long-term loans and short-term deposits. The liquidity of loans decreases and the liquidity of deposits increases, resulting in liquidity risk. In foreign exchange business, we should make a wise judgment on the trend of currency exchange rate and adopt "hard collection and soft payment". Strategies such as "soft borrowing and hard lending" are used to avoid exchange rate risks. Use fixed interest rate during economic contraction and floating interest rate during inflation to avoid possible interest rate risks. According to internal policies and procedures, market risk is subject to limit management, including trading limit, risk limit and stop loss limit, covering the main businesses that bear market risk and breaking it down according to regions, business departments, asset portfolios, financial instruments and risk categories. Second, the risk diversification strategy is "don't put all your eggs in one basket" in a popular phrase, which requires the Agricultural Bank of China not to focus too much on a few industries, regions or customers in credit investment to avoid a long-term recession of a certain industry. The economy in a certain area has shrunk seriously or the operating conditions of some customers have deteriorated sharply, resulting in fatal bad debts. At the same time, while vigorously developing credit business, we should constantly innovate financial instruments and financial products, actively develop intermediary business, implement diversified business strategies, and change the current situation of loan interest income in operating income in order to spread the risks brought by loan credit problems. For large-scale projects with uncontrollable risks, loans can be granted in the form of syndicated loans. If the loan forms a factual risk, it can be shared with other banks to avoid bearing too many losses. Third, risk transfer strategy, through legal trading methods and commercial means, transfer risks as much as possible. For example, when issuing a loan, the borrower is required to provide a guarantee. Once the borrower has a risk, the risk can be "transferred" to the guarantor, which requires a detailed investigation of the credit status of the guarantor. When issuing mortgage loans, it is required to insure the collateral, and once the collateral loses, the risk will be transferred to the insurance company; When issuing a letter of guarantee, the customer is required to provide counter-guarantee or pledge 100% of the funds, etc. Once the customer fails to keep the contract, the bank can recourse to the guarantee unit or directly deduct the deposit; Transfer interest rate and exchange rate risk through futures trading, option trading, swap trading (currency swap and interest rate swap), forward agreement and hedging in the international financial market. Fourthly, the strategy to restrain risks is to pay more attention to the changes of risk factors after taking risks. When there are signs of risk outbreak or actual occurrence, measures should be taken in time to prevent the risk from worsening, and efforts should be made to resolve the risk or minimize the losses caused by the risk. This requires ABC to strictly implement the account manager system, pay close attention to the changes of customers' main business conditions, track, inspect and evaluate the guarantors and collateral, find the early warning signals of customers' collateral in time, and curb the further expansion of risks and minimize losses by increasing the amount of collateral, guarantor or guarantee, stopping new loans and recovering loans in advance.