Research Of Internal Audit Of China’s Commercial Banks Based On Risk Management

Banking is an indispensable part in financial system and has far-reaching significance for the development of the national economy.In recent years,inter-bank competition is increasingly fierce,with the changes in the international economic situation and development environment.In order to occupy more market share,banks continue to expand network scale and business scope to increase revenue.However,the significant increase in revenue also generates relative risks and issues,and these problems affect the stability of the entire financial industry to a certain extent.Therefore,how to steadily operate is an important issue faced by banking industry currently.Finding reasonable and effective methods to reduce risks is crucial to the benign development of banking industry.Internal auditing is an effective means and important guarantee for the prevention of bank’s risk,and it also plays a significant role in improving corporate governance and internal control in commercial banks,hence it is very necessary for internal auditing to participate efficiently in risk management.But for the moment,the internal auditing in china’s commercial bank is generally flawed.It cannot play its due role in bank risk management under the influence of auditing system,method and means,adequacy of audit resources and other issues.However,in the current global economic situation,commercial banks are required to enhance their risk management capabilities,establish sophisticated internal audit system,assist relative departments identify risk efficiently,increase the accuracy of assessing risk,and improve risk response measures to reduce risk,promote management ability for managers,optimize corporate governance and accelerate organization’s smooth and continuous operation ultimately.The paper starts with the internal audit of risk management and takes Bank Z as an example to analyze Z bank’s corporate governance,risk management and current status of internal auditing.Moreover,problems would be raised from the system design,indicator system,positioning,supervision,technical means and personnel quality of internal auditing and based on thespecific bank’s negative risk control cases.Concrete improvements are proposed after referring to the documentation and working experiences of internal auditing staff in banks.Improving the comprehensive level of bank Z’s internal auditing through system perfection and various effective measures to achieve effective participation in risk management requirements and serve the operators by maximizing the value of internal auditing.Furthermore,the problems found in this paper and the proposed improvement methods have certain applicability to other commercial banks,and provides reference in perfecting internal auditing work for them as well.