Operational Risk And Internal Control Of Commercial Banks Based On SEM

In recent years,operational risk events occur frequently,resulting in lots of losses in assets and reputation for commercial banks.The internal control problem is one of the important reasons.It is quite necessary to make a study of operational risk and internal control.This thesis is about the relationship and influence mechanism of operational risk and internal control.First of all,this thesis elaborates the relationship between operational risk and internal control from different perspectives.Next,this thesis makes a quantitative study on operational risk and internal control based on SEM.By setting latent variables,observation variables,and relationship between latent variables,the structural equation model of operational risk and internal control is built.Then,SPSS and LISREL are used to make model fitting and model revision based on the sample data,getting the path coefficients of latent variables,and the verification results of theoretical assumptions.The study shows that operational risk is intrinsically related to internal control:1)From the perspective of development courses,operational risk and internal control's development courses are similar;2)From the perspective of operational risk causes,internal control is the primary sources of operational risk;4)From the perspective of operational risk characteristics,internal control adapts to operational risk characteristics;3)From the perspective of management method,internal control is the basis of the operational risk management;5)From the perspective of management framework,internal control framework is strongly associated with operational risk management framework.In short,internal control is an effective method for operational risk control.The empirical results also show that the internal control environment,internal control behavior,and internal supervision have direct positive impacts on operational risk.In a word,commercial banks should strengthen internal control management to prevent operational risk happening.