Research On The Internal Control Based On The Accounting Operational Risk Of The Commercial Bank

With the deepening of china financial market openning, all kinds of chinese financial institutions are facing the great challenges and opporunities, in the same time commercial banks have to pay more attention to risk prevention and internal control management. We have seen so many cases which were caused by operation risk recent year, how to control the operation risk effectively is becoming a paramount task to our commercial banks.The Basel Committee on Banking Supervision《Core Principles for Effective Banking Supervision》1997 said "The most significant operational risk is that internal controls and corporate governance failure". From that we can find operational risk prevention depends on a sound internal control. So the most important thing to reduce and eliminate the risk of a bank's operation is to strengthen commercial banks'internal controls.Based on the above background, this paper try to do some research on the internal control management of commercial banks of china from the sight of accounting operation risk. To handle the problerm caused by the accounting operation risk, this paper then provide some methods which are tring to help our commercial banks reduce the accounting operational risk.This paper combine theory study and case analysis. First, reiew the operation risk and internal control literature at home and abroad, find that operational risk study of abroad focus on operational risk advanced quantitative models of the selection and application; while in china the literature specializing in operational risk are very rare, and most of them were summarized description. But the study of internal control theory is mature,. So compare to the foreign research, the study of operational risk of internal control have not formated standard research paradigms and theoretical system.The next part is the theory research part of this papper. Which research on the internal control, accouting opereational risk and their related theory respectively. According to the China Banking Regulatory Commission's《Commercial bank's internal control guidelines》, in this part discuss the Objectives, elements, principles and program of internal control. Then overview the relevant theory of accounting operational risk. Besides in this article the accouting business sepcially refers to commercial bank accounting and back-office accounting operations counter integrated management. With the expending of bank's business types, accouting opereational risk is also increasing. So in the next part of this article we will focuse on the manifestation of accounting operational risk.Internal control is a commercial bank's internal System, methods, measures and procedures which composite such factors as interrelated and mutually constraining control mechanisms. From that point, Commercial bank's internal controls and operational risk management is a pair of linked concept. So the papper then analyze the relationship between internal control and operational risk.After the study of related theory, we found that when the commercial banks strengthen risk management, they should also have think ahout how to complete the internal control such as Internal control system, regulatory enforcement, the implementation of the accountability system and so on. But we should also seen a lot of deficiency of our commercial banks'internal control. To improve the level of accounting control practices risk, the accounting operational risk status of internal control should have to be analyzed.After the study of Internal control and Accounting Operational Risk theory, to cover the risk which caused by our commercial banks'internal control system of accounting operations. We proposed the following measures:(1) The internal control environment is the basis for enterprises to implement internal control, through the establishment of effective risks control organizational structure; Strengthen the internal control awareness; improven the overall quality of the staff; Strengthen the internal audit, so that can create a good accounting operational risk of internal control environment.(2) The establishment of a comprehensive coverage of accounting operational risk of internal controls is very crucial to the safety and soundness of banks regular running. through the establishment of early warning systems and the accounting risk prevention responsibility system, it can achieve a sound internal control system of accounting risk.(3) As an important condition of the commercial banks operational risk internal control system, The exchange and feedback of information, Should begin implementation of the "flat" management first. then, the information resources should be integrated i to ensure the timely and accurate delivery, to prevent operational risk timely.(4) To make full use of the monitoring and prevention function of the accounting analysis, firstly, we should promote the implementation of new accounting standards using in the commercial banks. Secondly, Improving the use of accounting analysis pre-, during and after the operational risk supervision.At last, this paper use a whole part to analyze the case------the Treasury stolen case of agriculture bank of china Handan branch.The principal innovation this paper is as follows:(1) The existing relevant research of operational risk and internal control is not integrated very closely. on the basis of previous studies, this paper Studied the internal control objectives, elements, principles theory respectively, solidified the theoretical basis for the next study of this paper.(2)In this paper, commercial bank accounting business as an entry point, analyze the internal control system of accounting problems of China's commercial banks operational risk, and after that give some Countermeasures and suggestions, which would help commercial banks to improve the internal control system, and prevent commercial bank accounting operational risk effectively.(3) Except general theory, this paper also do a case research in a separate chapter, Through "agriculture bank of china Handan branch treasury theft", this papper discuss the problerms that our commercial banks have faced in the internal control. This made the papper more reasonable and more practical.