Research On The Problem Of Internal Audit In Commercial Bank Based On Enterprise Risk Management-Integrated Framework

With the deepening of financial reform, the Chinese commercial banks are facing the high speed development and at the same time, going through a comprehensive transformation. However, the burst of financial crises and endless illegal and fraudulent financial cases made risk management of commercial bank into a major concern. As the control mechanism of organizational management, how internal audit play the function in risk management so as to raise the level of the risk management becomes a question that worth thinking.Based on the theoretical achievements of risk management and internal audit, unifying the real situation on the risk management of our countries'commercial banks, this paper discusses the necessity and feasibility of internal audit in risk management. Then, the paper restructures the internal audit mode under ERM framework to realize the function of value-added to facilitate the Chinese commercial banks to achieve their running goals.The paper first gives a brief introduction to risk management and internal audit theory, then analyses the roles of internal audit in risk management, setting a foundation for the further discussion about the internal audit in commercial banks. Then, embarked on the present situation of commercial banks' risk management system, the paper analyses the main reasons for the construction of the risk management, from which we can see that internal audit participates in risk management not only meets the commercial banks'strategic needs, but also promotes the development of the internal audit careers. And then, based on ERM framework to build up the internal audit pattern that combines risk management audit and risk-oriented audit, can resolve the practice problem of the way about internal audit participated in risk management. And based on this, the paper systematically elaborates the procedures and methods of risk management audit on the present process of commercial banks'risk management and risk-oriented audit on the surplus risk level. Finally, considering the present problems of internal audit in commercial banks, the paper gives perfect measures and related proposals.