Commercial Bank Operational Risk Assessment And Management Of Internal Audit

Operational risk with credit risk and market risk constitute the major risks ofbanking, which is an important content of the bank’s risk management. Prevent andreduce operational risk. To improve operational risk management is an important taskof the commercial banks. Internal auditing is an independent monitoring andevaluation activities, which uses systematic approach to evaluate and improve riskmanagement to help organizations achieve their goals. Internal auditing has beenevoluting from financial auditing, management auditing,then to risk management,risk identification, assessment and control is increasingly becoming a new field ofinternal audit, which affects the commercial bank’s operational risk management.Compared with developed countries, our country’s commercial banks level ofoperational risk management lags behind. The study wants evaluate and analyze theoperational risk of the commercial banks to provide methods and recommendationsfor the improvement of operational risk management.According to China’s commercial banks operational risk, the study analysis thetheory of operational risk and internal audit to assess the commercial banksoperational risk and management. The study bases on the framework of the COSOenterprise risk management and introduce the risk management maturity levelindicators, to construct operational risk environmental assessment model,and thenstudy the evaluation and management of operational risk internal audit form theIdentification of internal audit, the assessment of internal audit and the supervisionof the internal audit of operational risk. At last explain how internal audit applied tothe operational risk management through the case.