Based On COSO Risk Control Framework Of Huarong Xiangjiang Bank Financial Risk Research

By managing risk and getting profit is the features of commercial Banks. Due to operate the special business, commercial banks bear enormous pressure. Establishing a scientific and rational financial risk control system is the key to sustain continuous development and competitive of the commercial banks.This paper uses quantitative and qualitative analysis methods to investigate the financial risk of HuaRong XiangJiang Bank. Through analyze the bank's asset quality and liquidity, The results showed that:(1) There are four external factors easily induced the financial risk of Huarong Xiangjiang Bank, as macroeconomic downstream lead to the banks operational difficulties; the central bank benchmark interest rate adjustments and customer business risk cause the rate of bad debts growth; the centralization of the government;(2) There are six internal factors easily induced the financial risk of Huarong Xiangjiang Bank, as lack of ability to respond to market changes, financial risk early warning mechanism is not perfect, limited internal control and risk transfer instruments, financial transmission of information is not timely, the middle level of business is obviously insufficient, after the formation of the integration of risk. In order to improve Huarong Xiangjiang Bank coping with financial risks capacity, according to coso risk management control theory, this paper proposed some suggestions to strengthen the financial risk control of Huarong Xiangjiang Bank:(1) creating a good environment risk management philosophy to improve the risk management of individual consciousness;(2) the bank's financial risk control setting strategic goals, strict control of bank operations daily operations and business procedures;(3) to improve recognition technology and financial risk assessment methods to prevent or put an end to the financial crisis;(4) strengthen supervision and financial risk control activities and ensuring effective financial controls;(5) promote internal financial information communication, improve the financial information communication systems.Thesis researches on financial risk Huarong Xiangjiang Bank, and according to coso risk management control theory proposed some suggestions to strengthen the financial risk control of Huarong Xiangjiang Bank. This paper can help Huarong Xiangjiang Bank effectively identify potential financial risks and strengthen financial risk control. In addition, this research is also provided experience for othercommercial banks to enhance risk awareness and establish financial risk control system.