The Operational Risk Internal Control Research Of The Industrial And Commercial Bank Of China A Branch

Since the 90s of the 20th century, the concepts of financial information, financial globalization, and financial innovation continue impacting the traditional business mode of domestic commercial banks. With the changing pattern of banks and financial innovation in depth, domestic commercial banks had not limited the basic functions of deposits, loans, payment and settlement etc., but gradually extended to the financial intermediation, credit creation, and financial services etc., with a wide range of clients and products.With financial innovation endlessly, the margins of commercial banks rapidly expand, while the operational risks increase at the same time. From the risk loss situation of China's commercial banks in recent years, the banking financial institutions were mainly showing the following characteristics:First, operational risk cases increased year by year; second, the frequency of crimes by insiders; third is a huge amount of money involved. All these features are caused by the lack of operational risk internal controls of commercial banks. Issues such as the operational risk internal control system is not perfect, relatively backward means of risk control, irrational allocation of resources in risk control, non-scientific early warning system of operational risk have become increasingly prominent, the traditional operational risk control mode can not meet the increasing business development and management improvement any more. How to improve and perfect the operational risk internal control of commercial banks, to form a scientific, rational, comprehensive and effective system of operational risk internal control, is important to strengthen the internal management and to prevent financial risks of commercial banks.Take only the operational risk internal control of the Industrial and Commercial Bank of China A Branch for example, with the integrated use of theory and practice, instances of banks'operational risk internal control analysis and other methods such as summarized, from the meaning of operational risk of commercial banks and the analysis of the causes of operational risk, the measure and meaning of internal control, internal control and risk prevention, etc., to summarize the problems in operation risk internal control of the Industrial and Commercial Bank of China A Branch, and based on learning from the advanced experience of the operational risk internal control of foreign commercial banks, to propose measures and recommendations of perfecting operational risk internal control of the Industrial and Commercial Bank of China A Branch.