Research On Internal Control Environment Optimization In China Construction Bank Jilin Branch

Any organization should have internal control management, especially theoperating companies, the larger the scale of operation, the more need strong internalcontrol.Commercial bank plays the key role of financing in normal economic activitiesand it has wide connections with almost every participant in the markets. The natureof commercial bank’s business is about risk rather than money. Therefore, comparedwith other participant, commercial bank needs more precise internal control system.Theoretically, that the risk control of commercial bank is good or bad dependson the pros and cons of internal control. Practically, the economic cases and risksexposed in the bank’s operating activities actually head from the weakness of internalcontrol. To improve the level of the bank’s internal control, the first is to optimize theenvironment of internal control.As the financial crisis spread around the world, commercial bank business of ourcountry faces severe challenges: on one hand, macro-economically, with the grimsituation of financial competition, the lack of increasing power of economic growth,the prominent problem of economic structure, the development of bank’s scaleexpansion is more and more unsustainable. And banks also face the pressure ofmaintaining steady growth, making structural adjustment, and improving the growthmodel. On the other hand, the pressing needs of the development of banking reformfrom outside and the shortage of risk management of banks restrain each other.In recent years, both in state-owned commercial banks and local joint-stockcommercial banks, the risk events remain exposed and business cases happen occasionally, managers at all levels dare not slack off in front of the case preventionand control. All above is due to the weakness of management of internal control ofcommercial banks of China.To improve the internal control of banks, the first is to build a healthy internalcontrol environment. How to create a healthy and effective internal controlenvironment in the fierce competition, in order to control the internal and externalrisk of banks, to support the business development, is an important issue that weconfront.By studying the current situation of internal control environment of ChinaConstruction Bank(CCB)Jilin Branch, using the method of case study, this articleanalyses the manifestation, foundation, management conception of internal controlenvironment in all aspects, and point out that there are several problems of internalenvironment of Jilin Branch, such as the corporate governing structure isunreasonable, the power and responsibility of the organization is unclear, themanagement of human resources is weak and the internal supervision is insufficient.And by analyzing the problems above thoroughly, indicates that the deep-seatedreasons conclude: in aspect of conception and mechanism, Jilin Branch emphasizemore on development than risk control and reorganization of internal control; inaspect of operating, the staff of Jilin Branch don’t understand and master the conceptand method of internal control enough; external has negative factors to internalcontrol strengthening of bank, and so on.According to the problems in internal environment of Jilin Branch and the causeof the problems, this article proposes several measures of improving the internalcontrol environment system in aspects of organization, internal audit, humanresources management, culture construction. Specifically speaking, to improve theconstruction level of internal control environment constantly, build a reasonable andeffective organizational structure, distribute the power and responsibility scientifically and reasonably, improve the independence of internal audit and thequality of internal auditors, strengthen the internal supervision function, perfect thesalary distribution system, optimize the allocation of human resources, improve thelevel of the scientific management of human resources, and establish the practical andsuitable corporate culture based on its own characteristics.The conclusion of this article could provide certain preference for Jilin Branch toestablish healthy, steady, reasonable, efficient internal control environment.