The Research Of Internal Control And Risk Management For Commercial Banks

With the continuous deepening of financial globalization, economic integration, domestic andinternational macroeconomic situation has changed dramatically. In2007, subprime lending crisisoutbroke, now evolved a global financial crisis, this not only threatened the safety of the worldeconomic order, but also had a serious influence through Chinese economic development. Taizhouregion was the cradle of joint stock cooperative economic system and the birthplace of Chineseprivate economy, local commercial banks born difficultly, now faced more fierce competitionenvironment and more complex risk crisis. In recent years, Taizhou commercial banks constantlysought internal control measures to avoid risks on the basis of the risk characteristic and type.Internal control mechanisms, despite the improvement, were not perfect, because of the frequencyof various risk cases and the serious loss of funds. The business activities of Chinese commercialbanks were still a lot of insecurity, so the internal controls and risk management needed tostrengthen.This paper based on many investigations of regional commercial bank in Taizhou, thenanalysed major risks like credit risk, operational risk and market risk of Taizhou area commercialbanks, their internal control methods and typical cases to explore solutions of the practicalproblems. The paper also sought measures to avoid the main risks of commercial banks throughthe combination of main risk and internal control elements. Finally, proposed further internalcontrol measures to provide reference for the improvement of our commercial banks’ risk controlability and management ability.