A Research On Internal Control System Of Commercial Bank Risk

With the quick development of global economic integration and thepropulsion of the reform of financial system in China going thoroughly , thestability of the financial system faces a series of new topics. The principal status that commercial banks have had in the financial system, results in the extent of damage that bank crisis brings to economics in various financial crisis. For making continue development and carrying out the target of its steady management, commercial banks have to guard against each kind of risk, and to attach much importance to risk management. Guarding against risks is a very important work to commercial banks.Currency is just the commercial bank's object to operate. The increasing and decreasing of monetary capital takes up most of the capital movement caused by kinds of business affairs. This fact makes its business affairs can not be separated from its financial accounting activities. The financial accounting isthe key link of bank activities. The financial management section is the center of the commercial bank when it engages in accounting assignments. Its management should be omnibearing,systematical,and dynamic. The bank accountancy should take continuous,rounded,synthetically accounting and supervision on bank business, and it should provide information to the bank financial governors, such as production and financial condition of business affairs and so on. It is in the frond of the business affairs, and takes effect like a window or a gate. Therefore, for guarding against the risk of management, the commercial banks should constitute an effective financial accounting control system which start from accounting segment, and well exert its function. Then the commercial bank can promote the level of risk management completely.The financial accounting control is that ,with following up and fulfilling the laws and regulations of financial and accounting, financial accountant instruct,organize,supervise,restrict the funds movement and formal financial activities by using the accounting method and instrument. It is able to steadily raise the quality of accounting information, and protect assets to be safe and integrative. It minimizes the extent of any possible mistake and risk in the business process, then management about financial program and business object could be assured to fulfill. Commercial banks constitute a series of rules procedures,supervision systems and evaluation indexes to carry out the financial accounting control these composition form an effective system which will provide mutual check and supervision: Firstly, it provides timely accurate,integrated accounting information to commercial banks for guarding against risks; secondly, it can well exert financial supervision function, and help to achieve the commercial bank's aim; thirdly, it makes commercial banks tostrictly execute the accounting standard of financial enterprise, then it can keep banks steadily; fourthly, it guards against risks which resulted from accounting steps by further well-defined responsibilities,power and interests of accountant.