Study On Improvement Of Shanghai Pudong Development Bank Changsha Branch Of The Internal Control System

With the deepening of reform and opening-up in China, the domestic commercial banks has also been developing rapidly. The business in banks has been gradually moving toward a mature stage, thus driving and promoting the development of the national economy to grow up quickly. However, the commercial banks in China are less competitive and the financial supervision is incomplete at present. The internal and potential risks are relatively large. Therefore, how to establish the internal control system to prevent and defuse risks effectively, ensuring the safety and stability of banking system is an important topic to further research.This article is based on the author’s personal practical experience who have worked at Shanghai Pudong Development Bank in Changsha Branch for years. As a result of the incompleteness of internal control system,the lack of the risk management, the extensive daily operation and loopholes in management of the key link in Changsha Branch, select the internal control system in Changsha Branch of Shanghai Pudong Development Bank as the subject. Through this study, hopefully it is able to strengthen the internal control system, impel to perfecting risk management and set up the all-sided risk consciousness in Changsha Branch. Realize the systematized and refined risk management, ensuring the business in Changsha Branch keeps healthy, stability and sustainability. At the same time, banking industry and other enterprises can get some useful reference from this study.This dissertation adopts the research method of theoretical research with practice, comparison analysis and induction and deduction, focus on the analysis of internal control current situation of risk management,the existing problems and the reasons in Changsha Branch, referring to the abroad advanced experiences and combining with the actual situation of risk management of domestic commercial banks. Then, enclosing the internal control and the comprehensive risk management theory and basing on the constituent elements of the internal control system, the author evaluate the internal control system of Changsha Branch in the general and propose a scheme design about optimization of the internal control system in Changsha Branch of Shanghai Pudong Development Bank as well. The scheme design is founded on dissecting the comprehensive risk system in Changsha Branch. Besides, it not only describes vertical corporate governance, organizational structure, horizonal position responsibilities, risk management and internal cultural construction but also solves functioning the elements of the internal control effectively. In order to make sure that the improved system implements successfully, this study also suggests relevant strategies and safeguard from organizational structure, mechanism, personal specification, streamlining procedures, business design and other aspects, broaden the horizon of the comprehensive risk management.