Optimized Design Research On The Internal Control Based On The Operational Risk Of The Over-the-Counter Business Of CCB-J Branch

Since the recent years, along with financial globalization and innovation pace of development, the financial industry has entered a turbulent period. According to the relevant information and date China Banking Regulatory Commission disclosed, more than80%of operational risk loss cases are due to less of following established rules. This suggests that preventing and resolving operational risk primarily through improved internal bank controls. This paper combines theory study and case analysis. First, renewing the operation risk and internal control literature at home and abroad, find that operational risk study of abroad focus on operational risk advanced quantitative models of the selection and application; so compare to the foreign research, the study of operational risk of internal control have not formatted standard research paradigms and theoretical system. The next part is the theory research part of this paper. The overview of researches on the internal control, operational risk and their related theory respectively. Then it comes to the overview the relevant theory of operational risk. The next is the research between operational risks and internal controls. After the study of related theory, we focus to analysis the status quo of the over-the-counter business of CCB-J branch. This thesis also analyzes methods adopted by CCB-J branch in complementing internal control system and strengthening the operational risk management. It also point out the deficiencies of these methods and bring up5measures to build Three-Lines-of-Defense. Firstly, cultivate the compliance culture and found better internal control environments. Secondly, seek for the scientific approaches to identify and assess operational risk, quantified the effectiveness of internal control. Thirdly, improve and carry out rules and regulations. Fourthly, supervision instrument innovation. Lastly, keep a free and effective report channel. China’s commercial banks to improve internal operational risk control to provide ideas. In this paper, account management and bank and Reconciliation J Construction Bank branch counter business, the two specific activities proposed to identify key risk areas of business processes, and quantify the effectiveness of specific methods of evaluation of internal control. In addition, the traditional "three lines of defense" theory put forward proposals to further improve that commercial banks should be reconstructed first and second line of defense, which focused on the integration of risk management for functions, and thus the risk management team responsible for further expanded.