The Study Of Internal Control Risk Within The Bank Of China Grassroots Branches And Its Prevention Measures

Accompanied with the massive expansion of network in the grassroots level in recent years,the spectrum of the Bank of China’s credit business and assets business keeps widening. However,there exist flaws regarding Internal Control Risk Prevention within the grassroots network ofBOC. Almost all the serious criminal cases that happened in the BOC recently originated fromthe grassroots branches, which necessitates the construction of Internal Control System. Theauthor of the article tires to make some practical and valuable suggestions to the construction ofInternal Control System in the grassroots BOC, based on his experience of long-time interning inthe BOC and also, the related theories of bank risks.First of all, the author introduces the development history and the current operating conditionsof BOC, emphasizing on its developing philosophy today and the general information of thebranch office where the author interned. By doing so, the author presents the research settingsand background of the paper in both micro and macro levels, and then explains the purpose of thepaper from aspects of theoretical and practical significances. In the following, the author analyzesthe performances and causes of major accounting risk in Chinese banking system by illustratingthe practical problems the Chinese commercial banks encountered when exercising accountingrisk prevention measures. Afterwards, from his own viewpoint, the author concludes the majorInternal Control Risks that occurred in the grassroots networks, and then classified them,accompanied by the explaining facts the author himself went through. Finally, on basis of theInternal Control and Compliance theories, the author comes up with some specific methods ofsolving the problem from a few perspectives, hoping to help the grassroots branches improvetheir ability of Internal Control Risk Prevention, at last benefiting the healthy development ofBOC.