Research On Internal Audit And Risk Management Of Bank Of China

Commercial bank risk is the possibilities of getting or losing profit when the actual revenue deviates into the expected revenue under the influence of indetermination factors in the commercial bank conduction process. Recently along with China's social economic development, especially with the domestic bank's comprehensive open to foreign capital after China's WTO Entry, risk management of bank is of catholic concern by theory and practice circles. Nowadays internal audit of banking in our country is switching from the traditional mode which taking fraud prevention as its target to risk-oriented mode. The way by which the internal audit of banking can join the movement of risk management is of importance to banking management of China and is worth discussing.This paper introduces the present state of internal audit and risk management of Chinese banking, discusses the inevitability and feasibility of entry for internal audit to risk management according to their relationship, and puts forward the standpoint that internal audit of bank could develop risk management-based audit to take part in the job of risk management. And after the analysis of the connotation, the significance and the necessary condition of risk management-based audit, the paper designs a whole implementation procedure for the use of it in bank. Besides, it provides kind of advice on the use of risk management-based audit to bank of China.In a word, it is necessary and feasible for internal audit of bank to participate in risk management. And on the purpose of value-adding, the internal audit of bank of China should take part in the work of risk management by application of risk management-based audit.