The Research On Internal Control And Risk Management Of IB Bank

Since the1990s, the links of the globalization are deepen closely by internationalexchanges between countries of the world. Under the influence of economicintegration and liberalization, foreign banks saw the opportunity for development ofthe Chinese market and invested in this new economy actively in order to seek a newdevelopment path. So far, the development of foreign banks in China has gonethrough nearly30years. But it has been accompanied by a variety of management riskand has become more obvious. During the financial crisis, the financial industry isfacing unprecedented competitive pressures, and vulnerability and managementproblems of the internal control system becomes more and more prominent. Facedwith these challenges, it is the important to find the key that how to address the risk ofoperating internal control problems and how to build internal control system to adaptto the market development in China.This dissertation focuses on the object on the IB bank, combined with IB bank’sown advantages and characteristics, by a method of both theory and case analysis andby the basis of the internal control and risk management of foreign banks in theanalysis, and analyses its advantages and the main problem in internal control,furthermore they put forward the relevant strategies and measures for the issues topromote the sustainable and stable development.This dissertation is divided into five parts: The first part is a simple summary ofthe background、 significance of the article, the content and structure of the research.The second part expounds the relative between the internal control and riskmanagement theory of the banks by the analysis of theory. The third part describes thedevelopment of foreign banks in China and the internal controls. Foreign banks hasgone through four processes which began from infancy to the expansion phase, to anew phase of the contraction phase and a new stage. On the status of the developmentprocess through the analysis, the conclusion is found which is how to achieveeffective internal control, and the relative between the internal operational control andthe management of the banks. The fourth and fifth part gives a detail analysis basedon the first few chapters of IB Bank, summed up the advantages and problems facedby the bank’s internal risk management development in China, and then the last question asked how to improve countermeasures. Finally, we summarize the directionand strategy of IB banks in China’s future development, and put forward the prospectsfor the future.It is the key to the healthy development for banks by continuous improvementand strengthening of the internal control and risk management of IB banks,andimproveing risk control and risk predictability of the bank combined with theobjective requirements of the development of China’s market economy from China’sbasic national conditions by theoretical studies of internal continuous improvement offoreign banks in China.