Internal Auditing Of Financial Holding Group Based On Risk Management

The global finance industry developed along a spiral pathway of mixed management,separate management and financial holding group.The second half of the20 th century after the Great Depression had witness the boom of separate financial management,especially in the U.S.Whereas the U.S passed Gramm-Leach-Bliley Act at the end of the 20 th century,abolishing the separate management mechanism and financial holding group started its debut since then.Financial holding groups whose business scopes cover integrated banking operation,security and bonds,insurance,entrust,wealth management etc.gain momentous development drives quickly on the global financial market.Besides,both the Chinese 12 th and 13 th “Five-year Development Plan” schemes support the ideas “to advance the pilot management programs of comprehensive financing industry steadily”.Financial holding groups led by Pingan,Citic and Everbright are on the fast-tracks of development and expansion.The complicated internal organizational and controlling structures in the financial holding groups,the widely-adopted integrated internal operational models for higher efficiency in particular,make them better prepared to cope with fiscal risks,but not for the conflicts between various departments and entities bond by interests.The risks might be transferred and expanded,consequently its prevention shall rank top of the programs for risk control in financial holding groups,which leads to their ever urgent needs for such functions as inter-auditing and risk control.Should risk-management inter-auditing were introduced to the financial holding group,the performance of corporate governance,inter-corporate control and risk management will be enhanced by turning subsequent supervision into beforehand alter.Inter-auditing will play its due roles in the operational chains of creating value,as well as to control the risk faced by financial holding groups within the tolerant limits and safeguard industrial safety and stabilities.By means of combining theoretical analysis and case study,this thesis makes research into the risk-management inter-auditing in Pingan Group.In the first place,it elaborates the contexts about risk-management inter-auditing in financial holding groups;reviews and discusses documentations on risk-management inter-auditing,risk control in financial holding groups,as well as inter-auditing in financial holding groups;explains the basics of risk-management inter-auditing.Secondly,brief introductions on comprehensive operations in Pingan Group and risk management and status quo ofinter-auditing in it are made.In the third place,risk-management inter-auditing in Pingan Group is evaluated in terms of objective setting,scopes,structure and effectiveness on the basis of theories regarding risk-management inter-auditing and its status quo in Pingan Group.Finally,conclusions and suggestions are made about inter-auditing in Pingan Group.The suggestions and findings namely are: to launch risk management techniques into the inter-auditing process;to construct information networks on risk management;to restructure organization and process of inter-auditing;to make use of Big Data and Cloud Computation with the aim of strengthening the consultation functions of inter-auditing.As a newfangled auditing model,studies risk-management inter-auditing do not prevail in the circle currently,so do studies into its applications in financial sectors.The author of this thesis cogitates the uses of risk-management inter-auditing in Pingan Group by combining theories and case analysis;evaluates the practices of involving inter-auditing in risk management to realize its objectives and value adding.It is concluded that its findings practically apply to many financial holding groups,especially those with cross operations of many types financial services.For other types of financial companies,it is of certain referential values too while implementing inter-auditing oriented for risk management.