Study On The Internal Control System In Agricultural Bank Of China Based On Operational Risk Management

Banking operation risks were divided into the credit risk, the market risk and theoperational risk in the new Basel Capital Accord. During last 20 years, due to theinfluence of economic globalization, financial integration and other factors, worldfinancial market developed greatly and fluctuated dramatically. Banks are faced to theserious operational risks.Owing to old system, Agricultural Bank of China (ABC) has most institutionsand great excessive clerks. But, its management is weakest and its efficiency is lowest.So, study on the operational risk management in ABC has realistic positivesignificance.The competitiveness of inter-banks will focus on the internal managementcapability and the risk-control construction. Therefore, ABC should construct andoptimize its risk management system. This article begins with the current risk burdenand the main violence aspects to regulations done by commercial banks. In 2ndchapter, we explain once more the concept of operational risk management, and offersome metrics models. In 3rd chapter, we introduce the main contains of the new BaselCapital Accord and analyze its influence to ABC. We study deeply the regime of riskmanagement of ABC, including the main measures and technologies, through a caseto show its shortages in 4th chapter. In 5th chapter, we study the internal audit regimeof ABC through analyzing a case. In final chapter, we draw our conclusion and offersome suggestions for ABC on improving its internal control construction.