Mechanism Of Internal Control In Commercial Banks' Risk Management

Internal control is a dynamic process and mechanism designed by commercial bank to supervising, controlling and correcting risk by establishing a series of rules, procedure and methods, in order to achieve its goal. Analysis on the successful inner-controlled mechanism of the domestic and international commercial banks, we can get a conclusion that if the bank wants to achieve its development goal, it must firstly establish a set of integrity, reasonable, valid internal control mechanism. Effective internal control is essential to upgrading bank's competition and assuring bank system's stable operation.This paper analyzes the commercial banks' internal control, the definition and reason of the risk management, deeply studied in the purpose and the path of internal control in the commercial banks'risk management, to the agricultural bank of China internal control based on the first-hand information, analyzes in commercial Banks internal control the risk management of the role of result, have reflection also have results. Basing on the first-hand data of Agricultural bank of China's situation of internal control, analyzed the internal control in the commercial banks'risk management, there is reflection also results.This text brings forward some valid and viable methods according to the cause of the commercial banks. On control environment, building up modem corporation institution as soon as possible; On risk assessment Actively promoting the economic capital management system, developing scientific risk management and valuation system; On control activities, enhancing the job separation, perfecting decision-making and management system, assuring the continuity of internal control; On information and communication, building up unimpeded information exchanges and feedback mechanism; On monitoring, building up all independent audit system, updating audit principle, improving audit means, exaltation audit personnel's capability. Through above measure, creating good inner-controlled environment and setting up the valid mechanism of internal control, the state-owned commercial banks can carry out the purpose of strengthening the power of withstanding risk and enhancing their market competition ability.