The Study On Hunan Branch Of China Construction Bank’s Internal Control System Optimization Research

Commercial Banks are considered the intersection of market risk, with a highrisk of failure and ease, which is decided by the internal fragility of financial risk.However, the inherent internal fragility is the nature of the financial industry, which isdecided by its feature of high debt management—the root of modern financial risk. Asspecial financial firms that deal with currency, commercial banks’ risks are differentfrom the general industry, and about80%-90%of the funds are from the customers.With the increasingly fierce market competition, as well as the further development oftheir own requirements, internal controls, as a technology of self-control, whichprovide policies and programs with reasonable assurance for the specific goals of thecompany had been more and more regarded by the administrators and stakeholders.Internal control is especially significant to high-risk firms with high-debt likecommercial banks.Basing on the basic theory of internal control, the paper focused on its fourstages of development and expounded the definition, constitution and goals of internalcontrol in commercial banks. Where after，taking the five factors of internal controladvanced by COSO as breakpoints, the author conducted in-depth analysis on variousproblems that occurred combined with the status of CCB Hunan Branch andultimately brought forward the thoughts of optimizing it’s internal control system. Bythe analysis of the system, the author considered building internal control system inmodern financial corporations the key to consummate the system in CCB HunanBranch. According to international and domestic inspection requirements like <BanksInternal Control System Framework> by Basel Committee on Banking Supervision,<Guidelines of Commercial Banks internal control> by People’s Bank of China and<Assessment and Implementation of Commercial Banks Internal Control> by ChinaBanking Regulatory Commission, favorable internal control environments, advancedinternal control culture, sane system, strict implementation，powerful informationsystem, smooth communication, rational audit system and scientific audit procedurecan give full play to a modernized commercial banks internal control system with riskcontrol so as to improve the operating efficiency.