Research On Internal Control System Of XX Branch Of China Construction Bank

Commercial bank management is the core part of the operational risks of preventing and controlling, and the commercial Banks internal control is to prevent and control the effective way of operating risk, is the commercial Banks the smooth realization of business objectives, the powerful guarantee sustainable development. Since the 20th century, the world bank industry broke out a series of financial scandals and fraud case, give all parties to cause great losses. At present, the international financial situation remains unrest. After the reform and opening, the large foreign capital Banks in China into increased competition in the industry, especially after China’s entry into WTO, banking opened up to the world as the first of the enterprise, the more face severe competition pressure. In China on the specific contents of the internal control in after the reform and opening just have more in-depth research. Construction bank since 2004 achieve success since listing in the construction of internal control, made significant achievements, but also the perfection. Construction bank xx branch is China construction bank a special branch, the main reason lies in xx region is a the minority areas, sparsely populated, population overall quality is poorer, each profession fewer talented people, talent introduce is very difficult also. Based on the current domestic and international situations as a background, based on the construction bank xx bank’s internal control system as the research object, after reviewed and commercial Banks internal control on the basis of research achievements in theory, using standard analysis and induction, multidisciplinary fusion method and comparison analysis of construction bank xx branch internal control system is studied.Bank of China construction bank xx existing internal control system makes a deep research and analysis found that the internal control system, the problems and defects, and based on this, puts forward several Suggestions on improving construction bank xx bank internal control system some Suggestions. This article from seven parts of construction bank xx bank’s internal control system are studied and described. The first part introduces its research background, and this research meaning and purpose, research methods and the main content of this article is simply introduced. The second part of commercial Banks internal control expounded the basic theory, the meaning of internal control, the commercial Banks internal control connotation and main contents are introduced. The meaning of internal control on the definition of all countries, social groups endless and same, this paper mainly to British auditing standards, American COSO committee and our country "enterprise internal control basic norms about the definition of internal control are introduced. Our country "enterprise internal control basic norms of internal control of the internal control is a definition:refer to enterprises in order to achieve the operational objectives, guarantee business plan execution and enterprise economic activity in the orderly efficient a series of enterprise internal adopt method, the method and measures.The commercial Banks internal control, is to achieve the operational objectives, through the development and implementation of a series of systems, procedures and methods for risks precautions, a Chinese control, post-supervision and corrective dynamic process and mechanism. That is to say, commercial Banks internal control means to ensure every business banking, avoid the normal development of financial risk has taken a series of necessary management system and measures, is the commercial bank’s compliance risk management important guarantee. For commercial Banks, improve the effective internal control is commercial bank management goals and strategic target a powerful guarantee. Internal control system is not perfect or defect may entice risk, give a bank, countries and customers, ever losses caused the crisis, and the banking system of the bank’s internal control is not sound directly or indirectly relationship. Commercial Banks internal control main content includes:the internal environment is the commercial Banks internal control implementation based; Objectives, commercial Banks must first establish must achieve, namely the bank all business activities of commercial Banks, target the pursuit of the foundation, start all job; Events recognition, commercial Banks to may come from internal or external potential risk identification, timely prevention, and utilization, seize the opportunity to maximize realized to the interests of the bank; Risk assessment, commercial Banks should be conducted on the basis of risk identification, risk evaluation of the potential risks of influence and harmfulness of scientific assessment; Risk response, is to identify and assess the potential risk after the corresponding measures enacted; Control activities, is the commercial bank managers of Banks to prevent risks, a series of goals and formulate rules; Information and communication, is reliable information timely effective use can create value, and the circulation and share information from interpersonal communication, commercial Banks should establish scientific and effective information communication channel; Supervision and supervision is an indispensable component of internal control, is for internal control can better implementation, is for the timely discovery internal control are loopholes and defects and sound internal control necessary means. The third part from two aspects of domestic and foreign academic circles in major countries and of the commercial Banks internal control are reviewed, and introduces the internal control in China in recent years made on the theoretical results and the relevant laws, regulations and policies doctrine. Foreign commercial Banks internal control theory for the research earlier, have made great achievements, its research course can be divided into five stages probably, namely:internal dom theory stage, internal control system phase, internal control structure stage, internal control integrated framework stage, the risk management framework stage.Our research on internal control theory because of the special historical background and the impact on economic development, in recent decades began in related research theory are short, our main theoretical reference of foreign cash practice experience and theory, combined with the actual results of China’s financial industry in a few decades, the time made a rapid development, and have made great achievements. From the overall, Chinese commercial Banks internal control system construction probably experienced initial stage, initial construction stage, rapid development phase three stages. During this period, the internal control is more and more government and enterprise research and extensive attention of the academic circles. The fourth part is about construction bank xx analyzing the present situation of the bank’s internal control. This part of construction bank xx bank above all the generation and development process are briefly reviewed, and introduced the construction bank xx bank employees and main business. Finally the form of a graph introduced construction bank xx Banks internal control framework. The fifth part of the construction bank xx defects of the bank’s internal control are analyzed. Construction bank xx Banks internal control defect mainly displays in the following aspects:One is the internal control environment is not perfect, mainly displays in:insufficient attention to internal control, bank managers and other workers had not met on internal control from thought, the importance of internal control system is just written on-but formalism; Corporate governance structure is not perfect, no set up effective and scientific management organization mode; Their internal control systems, development, at present behind the rapid economic development, market competitive environment internal control system has not kept up with the development of the construction bank needs; Practitioners professional quality is not high, from education structure and titles of the structure, highly educated high title employees only accounts for a small proportion, bank human resources policy is not reasonable, it is difficult to introduce high-quality professional talents, lack of effective incentive rewards and punishment system, unable to arouse the enthusiasm of employees. Two is to risk awareness is not strong, for potential risk was not scientific ideological understanding, evaluation methods and techniques in a timely, accurate, not behind the discretion. Mainly displays in:risk awareness is not strong, not establishing a uniform, effective risk assessment management system; Risk assessment methods backward in technology, not internal control purpose; Risk management personnel quality is not high. Three information system is not perfect, communication. Mainly displays in:information system development and application can not adapt to the needs of business management; Communication, influence the authenticity of information. This paper last part through 2009 occurred in construction bank xx branch of a case study for construction bank xx bank’s internal control are analyzed, in this case, the construction bank xx branch employees pierced one take advantage of their positions, divert, and Olivia bank up to 300 million cash and attempt to fled the country, although a final don’t plunge, but this case justice exposed the construction bank xx branch internal control system existing loopholes and defects.The sixth part is the main content of this article. This section in front of a few parts were reviewed and the theory of construction bank xx bank’s internal control research status quo and shortage was given based on perfect construction bank xx bank’s internal control system several Suggestions. One is the perfect internal control environment:the ideological understanding the importance of internal control, the firm to strengthen internal control belief, improve corporate governance, establish the good enterprise culture, establish a rational human resources policies and the effective internal rewards and punishment system and strict execution; Two is to perfect the internal control system, and strengthen internal control execution:perfect internal control system, constructing scientific, reasonable and effective internal control system, and strengthen internal control execution, cannot let the formalism of internal control system; To strengthen internal controls, and build a reasonable internal control evaluation system. Three is to build scientific and perfect the risk assessment and management system:to establish scientific, positive risk management idea; Formulate overall risk management overall objectives and concrete goal; Strengthen risk assessment and risk management means, strengthen the advanced technologies such as electronic network technology application in risk management. Four is construct a scientific information systems and information feedback system:to establish scientific information processing system, promote the communication of information and communication; Perfect information transmission mechanism, ensure information security. The 7th part is the conclusion section. This section summarizes the main achievements made in this paper, and the limitations of this article was illustrated.