Study On The Problem Of Internal Control Of State-owned Commercial Banks Based On The Perspective Of Risk Management

In recent years, research on internal control of banks concerned and discussedhitherto unknown in domestic and international financial circles. This attributioncaused in twentieth Century since the90’s several international financial institutionsfail great loss and the resulting chain reaction to a great extent. If banks can maintainthe effective internal control system, these losses should be avoided. Internal controlcan prevent and find these problems in advance, in order to avoid or reduce the loss ofthe banking institutions. China’s state-owned commercial banksespecially thefourstate-owned commercial banks have also exposed some major cases.in recent years.Their common feature is the weak or ineffective of internal in miniature alwayshidden behind the internal control and the external weak of internal control ismanifesting the risk or the loss. Therefore, if controllingthe financial risk in theexpected range, financial institutions must solve their own problems firstlyandimprove the internal control mechanism and system, or they will have no end oftrouble for the future of the chain reaction.In this paper, how to establish an effective internal control system to explore fromthe perspective of risk management based on the new situation to reduce the riskswhile maximizing bank earnings. Based on review of commercial bank internalcontrol related theory development process, in accordance with the COSO "internalcontrol--integrated framework", the Basel committee "commercial bank internalcontrol principle" requirements, from the macro analysis of COSO five elementsinside the State-owned Commercial Bank of our country control the main problemsexisting and the deep-seated reasons of these behind the problem, analysis of thecurrent situation of risk management of our state-owned commercial banks. A roughestimate of commercial banks facing the risk with using the relative data, risk offailure is behind the internal control. Finally, we come to the conclusion that riskprevention emphasis on risk mitigation and risk prevention is the key to improve theinternal control system. The life lies in the execution of internal controland putsforward countermeasures and Suggestions to improve the state-owned commercial Banks internal control.