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

With the progress of the society and the development of economy,commercial banks of C hina begin to go abroad,responding to the opportunities and challenges from the international environment.Facing with a series of changes domestic and overseas,the commercial banks propose a new goal to the ability of controlling risk and managing risk.Hence,in order to take the lead in grasping the market of international finance with effective competitiveness distinctively,the administration of banks must be reinforced,built-in control of the commercial banks should be improved and planned,the capability of evading risks ought to be enhanced and the skills of management need to be advanced.Thus,the losses of commercial banks along with the risks could be reduced practically in this way so as that Chinese commercial banks should take an unassailable position in the international competition.Internal control of commercial banks in C hina has long been a subject of a study.Western commercial banks have a realistic history accompany with the demand of internal control in the long development process.Therefore the west has systematic study on bank's internal control for more than 70 years.In contrast,C hina has limited research on internal control after reform and opening for a long period of time,due to the lower level of the market economy development.C hina's commercial banks' studies on internal control started relatively late.American COSO enacted Internal Control-Integrated Framework in 1992.After that,many companies in the world take this framework as the main measure to control the risks.But the theoretical extent and practical extent emphasis that the establishment of the internal control system should be combined with the risk management all through.Co mprehensive risk management and internal control are closely related.Internal control is the necessary part of the comprehensive risk management,and the comprehensive risk management covers the internal control.Based on the background mentioned above,this paper builds up the internal risk-oriented control mode of commercial banks via introducing and describing risk management and internal control as well as their combination.