Evaluation Of Bank Risk Management Effect Based On Internal Control Theory

As an important financial institution,a bank is a financial hub to ensure the normal operation of the economy,and the risk management of a bank is particularly important.Internal control and risk management are inseparable.Internal control includes the identification and management of risks,and is an important means of risk management.The two need to be coordinated and integrated in the process of enterprise risk management in order to contribute to the management of enterprise risks and the sustainability of the enterprise.stable operation.With the deepening of my country’s economic system reform,more and more foreign banks have entered the Chinese market.The types of products and services of foreign-funded banks are relatively diverse,and relying on advanced business concepts,management techniques and service systems,they have gradually developed and expanded in the Chinese market,but risks may also increase.The bank in the stable development at the same time and can better control the risk has become one of the important goals of the bank.AB Bank is a foreign bank that entered the Chinese market earlier and has a mature risk management system.This article takes AB Bank as the research object to conduct a case analysis,and introduces AB Bank’s processes and measures related to credit risk and operational risk management.Quantitative methods such as method and camel analysis method to analyze its risk management effect,supplemented by qualitative evaluation and summary based on the perspective of internal control,and compared with domestic banks.According to the efficacy coefficient method,AB Bank has been scored on risk.The results show that AB Bank has maintained a good level of development and operation management as a whole.Although it is slightly insufficient in cost control and profitability indicators,its risk management and control level is relatively good.Through the camel rating method,AB Bank is compared with large domestic banks.The results show that AB Bank outperforms the average of large domestic commercial banks in indicators such as non-performing loan ratio,capital adequacy ratio,and liquidity coverage ratio that directly reflect the size of the risk.level.It shows that the risk management of AB Bank is worthy of reference by domestic banks.Finally,this paper provides relevant enlightenment and suggestions for domestic banks in terms of risk management and internal control system and process.