The Internal Control System Design Of Baoshang Bank From A Strategic Perspective

Internal control is a process and mechanism designed to supervise,control and correct risk by establishing and implementing a series of regulation,procedure and methods,in order to achieve commercial bank's operational goals.As a specialindustry with high risks,establishing and improving internal control system is the foundation of guarding against risk and ensuring the healthy development.In recent years,with the issue of Guidelines of Commercial Bank Internal Control,Basic Standard for enterprise Internal Control,Application Guidelines for Enterprise Internal Control,Guidelines for Assessment of Enterprise Internal Control,Guidelines for Audit of Enterprise Internal Control,China Banking Regulatory Commission has clearly requested commercial bank to establish systematical?transparent and documented internal control system,and asset its effectiveness.City commercial banks are the important strength which supports the development of local economy and small and medium enterprise.Internal control is the essential requirement of safe and healthy operation,and also is basic safeguard of achieving the bank's strategically goals.However,in reality,the establishing of internal control is the universal weakness in Chinese commercial banks.A prominent problem is that the internal control and the strategy of the bank do not match,and as a result,the internal control can't promote the achievement of strategic objectives.This paper takes Baoshang Bank as an example.Through analyzing its strategy,which is "focus on small enterprises,develop intermediate business,form different competitive advantages,explore the integrated management mode,become a comprehensive financial service integrator for small enterprises",as well as its internal control,the paper points out the mismatch between the internal control and the strategy.For example,the establishment of internal control has no objectives,no formal risk assessment program and is lack of the comprehensive analysis of main business process;internal control does not extend to the entire banking activities at all levels and business throughout the process.On this basis,the paper puts forward the overall thinking of establishing internal control system in Baoshang Bank,from the perspective of becoming a comprehensive financial service integrator for small enterprises.Moreover,the paper puts forward concrete measures from such five aspects as internal enviroment,risk assessment,control activities,information and communication,Internal monitoring.