Risk Assessment Of Internal Audit In Commercial Bank

The last 20 years in the 20th century witnessed rapid development of the banking industry and frequent outbreaks of financial and banking crises. Along with the deepening of China's opening up and economic and financial reforms, as well as increasing development of market economy, competition in the banking sector is becoming fiercer and fiercer, and possibility of banking crisis is increased. It can be said that the vulnerability of banking industry and potential banking crisis have become a major issue in the process of globalization. To realize the sustained and healthy development of China's commercial banks, we should enhance our ability to withstand all kinds of risks. It is necessary to constantly improve related management and mechanism to deal with risks. Internal audit as an important part of internal audit management system of bank is of great significance for the realization of all business objectives in bank.The first part,"The risk assessment of internal audit in banks is Imminent", introduces the potential risks of bank through a set of data. Under the background, business risk of bank, credit risk, market risk, operational risk and liquidity risk are discussed. On this basis, it is discovered that there is need for commercial banks to utilize the internal audit to enhance risk assessment.The second part,"The risk analysis of internal audit in banks", mainly focusing on the business cycle, is divided into three sections: in the first section, common audit methodology is reviewed; Second section is about the bank's basic business cycle and its classification; the main business cycle is composed of bank deposits, loans, intermediate business, the bank operations and five other types of business;In the third section, the identification of the risks in banking business cycle is presented.The third part,"The analysis about risk measurement of internal audit of bank", consist of two risk measurement methods: One is indicator analysis, the other is model analysis, the VAR model of credit risk The forth Part,"The application of the result of risk assessment for bank internal audit"is mainly based on risk identification to effectively prevent, control and reduce risks basis. This part is divided into three sections: First, the application of the results of the audit for risk management; The second section is about the guidance to the bank's risk strategy; in the third section, it is introduced that external regulation, the banking regulatory authority can use bank internal audit risk assessment results as reference to save audit resources for the regulatory authorities and to realize effective risk management.This article reflects the important role of bank internal audit in risk assessment, establishes operational connections with the detailed microscopic risk identification, and also involves macro risk measurement from overall point of view; Comprehensiveness, systemization and practicability are the biggest features of this paper. Due to the author's limited knowledge in banking operations, the understanding of the risks about banking business may be not adequate, and to a certain extent, may affect a comprehensive assessment of risk factors for the banking business.