The Research On The Risk-oriented Internal Audit Model Of M Insurance Company

With the closer economic integration,the competition between enterprises has increased and the risks have intensifed more and more.How to manage and control risks has become an unavoidable problem for enterprise.As an important component of corporate governance and management,internal audit has played important roles in different stages,such as financial audit,operational audit,business audit,management audit,etc..But the risk-oriented internal audit is in the initial stage of development,only some successful cases and the best practice in foreign countries.This audit model has not yet formed mature methods and system of operation in China.In 2016 CIRC implemented China Risk Oriented Solvency System,namely C-ROSS II,a major event in the insurance industry.C-ROSS II is the risk-based regulatory rules.The insurance company should control all kinds of risks,risk management is linked to the minimum capital requirements.M is one of the leading company in the insurance industry.How to control risks,maintain stable development,and play the internal audit function have become an important problems to be solved urgently.Firstly,this article briefly introduces the evolution of internal audit,focusing on the risk-oriented internal audit.Some theories,characteristics and concepts are described.Secondly,the new requirements from C-ROSS II and problems of internal audit in M company are presented,and the necessity of carrying out risk-oriented internal audit is introduced for insurance companies.Finally,the problems and its causes are carefully analyzed.These problems are solved by optimizing the existing internal audit process and applying risk management theory.The implementation process is illustrated by a special procurement audit project,the beneficial effects are summarized.At the same time,some improvements and optimizations in practice exist for this aduit model.Specific beneficial measures are shown at the end of the paper.Sincerely hope that some suggestions or ideas in this article are valuable to the internal audit of the insurance industry.