Research On The Performance Measurement System For Internal Auditing Of Credit Risk Management

As the credit risk is the biggest risk which of the banking faces, the prevention from credit risk and the improvement of credit risk management is one of the most important priority to the commercial bank. Internal auditing has been evoluting from financial auditing, management auditing, then to risk management auditing as the independent review and evaluation, pays attention to the risk management for the key point gradually. But hitherto, the development of internal auditing of credit risk management in China, can neither keep the pace with that in developed countries, nor meet the needs of commercial banks. One of the reasons is the lack of a performance measurement system systematic, scientific and comprehensive, for internal auditing of credit risk management. Thereby, it is essensial to establish such a performance measurement system.Begin with defining the concept of internal auditing of credit risk management and reviewing the related researches on internal auditing and credit risk management evaluation, this study establishes a new general frame of internal auditing of credit risk management from the view of strategy, which focuses on both internal auditing aim and credit risk management aim, consists of four factors: credit status factor, risk management system factor, credit risk assessment factor and credit risk control factor, and includes qualitative and quantitative, and process and outcome. The study also applicates the system for test eventually.The study focuses on the establishment of the index system. Based on open questionnaires and statistic analysis, the study selects 20 indexes from a great deal of indexes collected from the related researches. Then each index is weighed based on Improved Fuzzy Analytic Hierarchy Process, and normalized to measure the credit risk management, find out the weakness of the credit risk management of the commercial bank, and direct the internal auditing.