Research On The Application Of Internal Control And Risk Management In Commercial Banks

Risk management has always been the focus of bank, and the bank industry is leading the way in risk management. Influenced by domestic and international environment, risk management of Chinese commercial banks is in a stage of rapid development. However, the commercial banks are confronted with different regulatory standards from different superior regulatory authorities after being listed. For instance, Ministry of Finance and CSRS release regulatory rules according to COSOⅡ, while CBRC simultaneously requires the implementation of BASELⅡand brings about corresponding rules. If the commercial banks had to carry out different regulatory standards, it would not only waste a multitude of resources, but also do no good in improving risk management.The paper sticks to the framework of problem-proposing, problem-analyzing and problem-solving. Through review of literatures, analysis of institutional backgrounds and the grasp of Chinese commercial banks' risk management situation, it illustrates the implementation of COSOⅡand BASELⅡwhich leads to the dilemma of Chinese commercial banks from three aspects including theories, institutions and realities. By means of difference analysis and coordination analysis, the paper figures out it is the best choice to construct a comprehensive risk management system to coordinate the implementation of both COSOⅡand BASELⅡand create synergy.All in all, the paper raises several proposals on institutional construction and technical means for risk management in the context of Chinese commercial banks, aiming to cope with the problem of different regulatory standards, strengthen the institutional construction, improve the management techniques and further upgrade the risk management of Chinese commercial banks.