The Internal Fraud Risk Management Of China Banks

In recent years, subject to external economic and social situation and complexbanking institutions physique, deep-seated problems that exist in the internalmanagement mechanism and domestic internal fraud cases larger rebound. From theoutside, due to funding constraints, seek funds through various means phenomenonwill spread. Internally, the credit risk on the one hand after the big launch willgradually appear, on the other hand competitive banking institutions, deposit businessdevelopment lending policy and market facing the dual pressures. Economies of scaleand rapid growth in demand contradiction objective changes in the externalenvironment, easy to make cadres and employees on the business philosophy of bias,acquaintances, relations people, old customers about business guard, instead of usingthe human system, instead of using the trust system, business review "going throughthe motions,"providing an opportunity for a number of criminals committing thecrime. Increasing the risk of internal fraud cases.Thesis of reports collected from the media network to78domestic bankinginstitutions in the case of internal fraud risk-based, from the time span, type ofbusiness, types of fraud, the banking system screening, analysis and research, come toour commercial internal fraud risk in the banking business institutions exist grassrootsinternal fraud risk management awareness, lack of internal fraud risk awareness bankemployees, identification and control means a single internal fraud risk, the lack ofinformation sharing between internal fraud risk in the banking sector, banks focus ongrassroots management operations personnel and ignore the supervision of seniorleadership, ignoring the dynamic behavior of the staff control, lack of internal fraudrisk management quantitative assessment indicators, the problem is not enoughdiscipline violations in eight areas. On the issues identified and proposed theestablishment of employee behavior files, create internal fraud risk prevention earlywarning mechanism proposal.