The Research On Inter Control To Chinese Conmmercial Banks Based On Overall Risk Managemnt

In the process of financial liberalization and economic globalization, financial risk amplified rapidly. Chinese commercial banks, as the financial main body, haven't input enough resources to adapt to the new economic financial environment in the aspect of strengthen management and perfect inner control due to the diversification of the operating goals. The specified risk in the economic environment together with the inherent risk in the financial market released under the condition of the macro politics and economy in the particular country and district, which lead to the frequency of the worldwide financial crisis, especially the bank crisis which has the characteristics of high frequency, extensive distribution, long duration, severe harm and strong diffusivity. This paper discussed the new development of the present inner control in the commercial banks based on the study subject of Chinese commercial bank inner control. Through the comparison and analysis, the paper summarized the common tendency of the inner control, found out the problems hides in the construction of the inner control by investigating the present status. By introducing the integrated frame of the enterprise risk management, it proposed the tactics and suggestions to perfect inner control.The paper is composed of three sections. The first section compared and analyzed the differences between Chinese and foreign commercial banks in the practice of inner control management, and provide the development tendency of the Chinese commercial bank's inner control based on the overall risk management. Through the survey of questionnaire, the second section summarizes current status and issues existed in the inner control in the China commercial bank basis of the enterprise risk management. The last section constructed the inner control frame in the commercial bank under the enterprise risk management; it also directed to construct Chinese commercial bank inner control from overall and operational view.The conclusions drew by this paper are as follows:1. based on the comprehensive analysis of the inner control theory, it proposed the Chinese commercial bank's develop tendency of inner control based on the overall risk management through comparison and analysis of management practices between Chinese and foreign banks, which is to define the responsibility of inner control, especially emphasized in superior management staff, to establish effective organizational structure and mutual independent business department in responsibility; to apply electronic means to control risk; to emphasize in connection of inner control and business management process; to advocate culture of control, emphasize the importance of human; to emphasize the awareness of risk; to emphasize the target and subdivision of inner control; to emphasize information communication; to emphasize the principle of cost and profit.2. According to key element of commercial bank inner control and related factors of inner control, this paper used questionnaire, through a detailed process of data generalization, empirical analysis to the generalized data by means of data dependence analysis, principal component analysis, optimal scaling analysis, summarized current issue existed in Chinese commercial bank. These issues include un-maturation of better inner control environment, under-estimation of risk, out of date means of risk management, and little effects of inner control actions, inadequate of information communications. Improvement requirement of information system, ineffectiveness of supervise.3. Based on the total risk management, the paper constructed inner control frame of Chinese commercial bank, and direct the construction of inner control. By means of analyze to total risk management and inner control, confirmed total risk management inner requirements to Chinese commercial bank which include the requirements of inner control target meet the strategic target of commercial bank, emphasize the concept of risk, further strengthen the risk evaluation and coping; pointed out the directive thoughts of china commercial bank's inner control construction which includes putting prevention and controlling first, paying attention to system hamper, process control as well as responsibilities pinning; defined elements composed to inner control, which are inner environment, target setting, events(item, business) definition, risk evaluation, risk reaction, control activity, information and feedback, supervision. On this basis, it also directs to reconstruct Chinese commercial bank inner control from point of overall view and operational view.