Study On Application Of Risk Identification Assessment Of Lanzhou Central Branch Of People’s Bank Infrastructure Projects

Risk assessment is the core component of risk-oriented audit. The application of the risk assessment method will directly affect the validity of the audit results.Lanzhou Central Branch of the PBC always attached on the internal audit, especially set the risk assessment as a top priority. In 2011 headquarters of PBC initially construct the evaluation system which acted the risk identification as basic, quantified the risk as the key part,use quantitative risk analysis as a means and consider risk distribution & risk ranking for the target. In2013 the internal audit department of the PBC established risk assessment framework which mainly use residual risk assessment model. In the process of evaluating the business objects’ risk,the inherent risks and the effectiveness of internal control was taken into account. In March 2015,Lanzhou Central Branch of the PBC was selected as one of experiment bank according to the headquarters’ document named The PBC internal audit work in 2015. So the leadership attached great importance to the work of the experiment and gave full recognition to the result.The author based on the working bank, studied the basic functions and features of the internal control system of the PBC, compared risk quantification in commercial banks all over the word and the China central bank. For the target of achieve the indicators of identification assessment framework of the PBC, we conducted the applied research of assessing risk identification in Lanzhou Central Branch of the PBC. On how to divide the evaluation objects, identify the inherent risk, assess effectiveness of internal controls, calculate and adjust the residual risk assessment and other specific steps in the specific process, the standards and measurements have been studied on practical applications based on the results presented refer to audit plan. This work also combined with the practical problems to identify risk assessment and put forward some suggestions for the Bank’s risk oriented audit work. It plays a more favorable role for our bank to promote risk-oriented audit model, and also improve risk management, the internal audit work will improving internal control status.