Accompanying with the various changes of financial enterprises and environment, professionals in the financial field, like standing on the top of the cliff, should keep on absorbing new information continuously for preventing from eliminating through competition. Copping with the integration trend of financial institutions, it becomes much more general for international financial institutions to achiev the enterprise-crossing management, which gradually causes the divergences and original market in indistinctive between defferent institutions. Under the financial reform improvement and development of Taiwan financial enterprises, large scale financial holding companies are founded one after another. The financial holding systems include Bank, Securities, Insurance, Finance bills, Securities investment trust, Investment consultion and other subsidiary companies. Each financial holding company raises its own capitals, operation efficiency and economical competitiveness. Thus, it should be much more important to establish a reasonable and consistent integrated risk management mechanism under the trend of enterprise-crossing management financial institutions.
Especially, the possibility of Operational Risk may rise up substantially. Thus, Basel Committee on Banking Supervision (BCBS) suggests that beside the credit risks and market risks, it should to add the executive risks into capital charge on Basel II. Basel Committee not only defines the concrete executive risks, but also has the norm on capital charge, risk transfer, and risk mitigation. It will be helpful to offer enterprises and supervisory ministries for following. However, executive risks management is not a whole new concept. In order to accommodate to the radical changes of fininancial management environments nowadays, how to use a consistent and constructive methodologies of the management of executive risks to create the further shareholders values and raising corporation competitiveness will become a new focus issues to global enterprises and supervisory ministries. For this, domestic enterprises should turn the negative attitude into positive. Additionally, enterprises have to realize executive risks first, and then to manage executive risks in advance; thus this could be the correct accommodative measures.
Because of executive risks are closed linked to daily operation activities, any cases in which high or low frequency happens and in which serious or seldom loss happens cannot be overlooked. Accompanying with widely information technology applications, the emergence and developments of electronic commerce, mergers and acquisitions in business, and different kinds of commercial products releases, and the raising percentage on outsourcing executives, how to implement and control executive risks completely becomes the most front burner especially.