Research On The Construction Of Internal Control Of HBbank

At present,the financial environment is grim.Commercial Banks are facing great impact of the influx of foreign banks,the rise of the Internet Financial and changes in economic conditions.Affected by the national economic policy,bank interest margin decreases,and it is difficulty for commercial banks to generate profit.As liberalizing interest rate increases the competition for deposits,commercial banks have begun to compete on price,while operating capability declines.Risk exposure intensified,and malpractices in financial industry occurs frequently.Therefore,internal control management within commercial banks must be enhanced to a new height to strengthen the corporate governance,build the culture of compliance,improve the process,control risk,prevent cases from occurring,improve risk management and create a harmonious stable financial environment.The paper includes research on basic theories and development trend of the internal control management,study of good practices and analysis of the status quo of HB bank's internal control management system.The paper analyzes the problems that are exiting in the current internal control management from five aspects,including control environment,risk assessment,control activities,information and communication,and monitoring.It is realized that the core problems of the management of internal control are the incompleteness of the system,the shortage of talents and the need to integrate internal control system.This paper puts forward corresponding,specific suggestions for internal control optimization,based on the “five components” of internal control.It suggests to replace the traditional hierarchical internal control structure with a flatter network structure,seeking to optimize effect of control activities and improve system construction.The proposals discussed in the paper include establishing the talent pool to reserve and keep talents and provide new blood for internal control management,strengthening risk management,adjusting risk appetite timely,maintaining business flexibility and fastening business transformation.Moreover,the paper suggests include accelerating information system integration,resource sharing,integrating,optimizing operating process,reducing human intervention and improving automation.Giving a full play of “the three lines of defense” in internal control,enhancing supervision and inspection,utilizing the adverse effects of inspection results on operation and development to the fullest potential are also proposed in the paper.Using the actual situation of HB Bank's internal control as starting points,the paper puts forward suggestions for optimization mentioned above.However,there may be some implementation difficulties in practice,because of great consumption of resources and considering current focus of operating management and long construction time of the system,.Constantly optimizing and improving are needed in practice.