Research On The Improvement Of Internal Control System In CCB Liaoning Branch

Banks are financial institutions which manage the currency and credit service.As an important component of the banking industry, commercial banks play thepivotal role of economic operation, and become a main force propping the nationaleconomy. Nowadays, banking environment is complicated and changeable, therequirements of external regulation mainly increased, the market competition andbusiness transformation need the support from internal control, internal control booststhe profit of bank. How to improve the internal control system, has become theresearch focus of the commercial banks.Internal control is a dynamic process and mechanism. In order to achievebusiness objectives, commercial banks formulate and implement a series of systems,procedures and methods to prevent, control, monitor and correct the risk. Through thestudy of the internal control system, banks can advance the level of risk control,improve the governance structure, reduce the business risk, enhance profitability andrealize the business target.This paper introduces the current situation of internal control in CCB LiaoNingBranch, it finds out the problems in each aspect of internal control in CCB LiaoNingBranch, the problems contains that the organization settings do not match the rightsand duties. the lack of elements of risk assessment framework and standard, controlactivities trailed the changes of business and automatic controls account too less,internal control information communication channel is not smooth, supervision andevaluation system is not perfect.Through the detailed analysis of five internal control elements as controlenvironment, risk assessment, control activities, information and communication,supervision and evaluation, combined with the internal control practice of CCBLiaoNing Branch, this paper finds the cause of the problems of the internal control system in CCB LiaoNing Branch. The root of the problems is that there is no clearlydefinition of internal control responsibilities, the accountability work is dispersive,staff misunderstands the internal controls, fails to establish a unified risk assessmentframework and standard, not effective to determine the risk level, the internal controlpolicies are failed to update with the changes of business process, large numbers oforiginal business system promote the spread of automatic controls, poor data qualityis not conductive to the sharing and analysis, there is not a perfect report operationspecification, the internal control evaluation ability of staff is different in differentbranch.Based on the results of analysis, this paper puts forward the implement schemeof the internal control system in CCB LiaoNing Branch. To CCB LiaoNing Branch, itshould improve the organization settings and optimize the internal controlenvironment, establish advanced methods of risk identification and assessment,strengthen the standard control and automatic control, establish clear channels ofcommunication also promote information disclosure and sharing, multipledepartments combined to supervise with the independent supervision of auditdepartment.The improvement of internal control system, which is the need to achievebusiness objectives, the result of the competitiveness enhancement. Companiesshould renew and improve the internal control system constantly, promote itsdevelopment by the means of internal control policies and methods.