The Study On Compliance Risk Control System Construction Of EA Bank XA Branch

It has been proved by the global financial crisis triggered by the sub-prime crisis that the free-market has deficiencies. With the enhancing supervision from the authorities and more complex operating environment, banks bear increasing pressure to control the compliance risks. At present, the. study on the compliance risk has just initiated. No advanced compliance risk control model has been certified to be applicable to all kinds of banks. In the attempt to improve the efficiency of compliance risk management, a scientific compliance control system based on the risk control principles is established in the paper to cater to the sample bank's sound development.With the objective of constructing a compliance risk control system for the sample bank, the following theories are introduced at the beginning as a scientific foundation: comprehensive risk control based on the new Capital Accord, the concept of compliance risk management and internal measurement approach. After analyzing the compliance management status of the sample bank, a suitable compliance risk control system is proposed to convert certain inappropriate concept of compliance, adopt more quantitative analysis in risk assessment and rectify incentive and restraint policies. According to the concept of the new system, the compliance risk control will be integrated into the overall risk management system. Fostering compliance culture will be served as the base of the system. A compliance information database will be set up to collect related information. And the compliance risk will be measured in quantitative methods in accordance with the basic principles of internal measurement approach. Accordingly, the risk management resources will be reasonably allocated and finally self-restraint mechanisms will take effect in compliance risk management with the practice of economic capital control. To realize the virtual risk control system, the sample bank shall readjust its organization charter, distribute necessary human resources and adopt IT technologies arranged for the risk control system. Furthermore, through the implementation of ERP reform, the compliance risk management will be enhanced because the risk control is paralleled with operation management. For practical reasons, the sample bank may gradually introduce some compliance risk management tools and methods conceived in the system.The compliance risk control system is framed in accordance with advanced risk management principles and derived from case study. It can be implemented in the light of practical conditions and requirements and gradually introduced at different levels. Therefore, it is highly valuable for other commercial banks to improve their compliance risk management...