Research On Internal Control Of Chinese Commercial Banks Based On Risk Management

Under the background of economic globalization, financial risk dramatically expanded. Commercial banks which dominate financial system faced to more severe challenges. Especially in recent years, due to the frequently exposure of a series of domestic financial cases, the internal risk control of banks had attracted widespread attention. The healthy development of commercial Banks directly affect the stability of the financial system, and even national security. Effective internal control is the basis of risk management for Chinese commercial banks, and also the objective requirement to strengthen financial supervision and to maintain financial stability. COSO issued ―Enterprise Risk Management-Integrated Framework‖, provides a new train of thought to our set up of the commercial bank internal control. Based on the risk management will let the commercial banks emphasize on the assessment of risk and control risk effectively daily, which improve the ability to establish a competitive internal control.Through the comparison and analysis, this paper discussed the development of internal control in the commercial banks. By analysis the factors of ERM, this paper combined the four factors as risk management activity: setting the target, event identify, risk assessment and risk disposal, found out tendency of the integrated frame of the enterprise risk management. Using the approaches of normative analysis, the paper summarized current status and issues existed in the internal control in the Chinese commercial bank basis of the enterprise risk management. At last this paper defined elements refer to Enterprise risk management and proposed the tactics and suggestions to perfect Chinese commercial banks inner control.