A Study Of Enhancing The Internal Control Management Of National Commercial Banks

The innovation of bank internal control management has wide meanings, which include not only the innovations of the internal management approaches and technology, but also the digestion and absorption of the introduced ones. However, whether the innovation works entirely depends on the time speed and effect on the transformation and application of its abilities and achievements. The definition of making the innovation of internal control management is to get the effective identification, assessment and control by drawing up and carrying out systematized policy, process and program. From an economic perspective, it also means preventing or minimizing the existences of the risks by the fewest cost in order to get the greatest security and achieve the value of bank management. Thus, the innovation of bank internal control management is closely related to its management value. The former builds basic stage for the latter while the achievement of the latter really depends on the effective implementation of the former. Internal management is an important means of improving the commercial banks’ core competence, which is closely related to their own existence and development. Internal management is the key measure of preventing and defusing the financial risks, and also the basic security of achieving each business objective. In recent years, serious cases happened in some commercial banks, which is largely because of the runaway of the internal control management, and the bias caused by the checks and balances among the system’s development, implementation and security. With the continuing increase of the bank supervision, the importance of compliance risk management is fully understood. It means that commercial banks will suffer the risks of legal sanction, supervision punishment,great property loss and reputation loss if they don’t obey the laws and principles. Various financial cases have continually emerged for many years. Analyzing each case, it’s easy to find that there is a common ground, including weak compliance construction and also impossibilities of recognizing and controlling risks. With an example of a certain bank’s actual operation in some areas, this paper puts forward the effects of internal control management, its expected results, and the approach to achieve the management value whileexpounding the innovation of bank internal control management.