Abstract: China Banking risk management research and practice late compared Dinner, basic long stay in the stage of implementation of internal control, risk management, but also to understand the main emphasis on the credit risk management, and from the international and domestic financial practices development process point of view, a comprehensive risk management model is a commercial bank survival and development of the inevitable choice for small and medium sized joint-stock commercial banks in financial theory and practice of the process of rapid development and change to improve core competitiveness, we must study and learn the international and domestic well-developed banking sector practical experience in risk management, internal control phase as soon as possible from a comprehensive risk management phase transition, build viable comprehensive risk management framework.
Paper Keywords: small joint-stock commercial banks, risk management, internal control
An internal control and definition of the concept of comprehensive risk management
(A connotation of internal control
1992 << COSO Internal Control - Integrated Framework >> Lieutenant internal control is defined as a corporate board of directors, management and other personnel to achieve process designed to provide reasonable assurance that the following objectives: reliability of financial reporting, effectiveness and efficiency of operations, compliance of laws and regulations. internal control should have five elements: internal control environment, risk identification and assessment, internal control measures, information exchange and feedback, monitoring, evaluation and correction.
Second, China's small and medium commercial banks to implement fully the necessity and importance of risk management
(A risk factor faced by financial institutions diversify
Financial institutions diversify risk factors, including credit risk, market risk, operational risk, liquidity risk, reputational risk, legal risk, strategic risk and country risk. Banks are due to improper risk of loss control measures, some Case lost huge amount of money, small and medium commercial banks in terms of their relative lack of anti-risk ability, more systemic risk caused by the loss,
Third, the domestic banking sector status of implementation of comprehensive risk management
(An Industrial and Commercial Bank of China, Bank of China and other large commercial banks to establish a comprehensive risk management governance structure
Such as Industrial and Commercial Bank of China in 2004 introduced the concept of COSO ERM framework, in accordance with the modern financial corporate governance standards established by the shareholders' meeting, the Board of Supervisors and senior management consisting of a comprehensive risk management governance structure, the development of relevant authorization scheme, the formation of authority decision-making body between supervisory bodies and senior management roles, coordinated operation of effective checks and balances mechanism to re-adjust the Risk Management Committee, and in July 2006 established the Chief Risk Officer, to carry out a comprehensive risk management provide an institutional guarantee.
Fourth, build SMCBs comprehensive risk management framework proposal
Combined with domestic and foreign commercial banks, comprehensive risk management organizational structure construction experience, joint-stock commercial banks to small and medium commonly practiced total branch-administrative system based on the author proposed according to the "centralized management and control, matrix distribution, full coverage, full participation," the objectives and requirements , the establishment of a branch three linkage total risk management mechanism to centralize the functions of risk management department for the characteristics of Chief Risk Officer as a link in order to spread the risks of each business line manager based architecture and functions of the division.
The Board consists of the Risk Policy Committee, which primarily determines risk appetite indicators and provide policy advice, the senior management has established a risk management committee, served as chairman of the president, vice-chairmen held by the governor in charge of the other line-level leadership as the Standing Committee, set up a permanent establishment of the Risk Management Committee - Risk Management Department as the actual implementation of the risk management department, which focus on all types of risk management function, you can set including credit risk, market risk and operational risk teams, Appointment of various risk manager, may also need to set the strategic risk and reputation risk management team, set up risk management director, risk management services for comprehensive coordination, risk management director to work closely with the Chief Financial Officer, directly reporting to the board and senior management work in all business lines set risk manager post, on the one hand with the business lines responsible for risk control, the other is for the risk management department in the business line are dispatched units responsible for risk data collection, risk status real-time monitoring, risk managers were dispatched to establish branches, risk managers stationed risk management branch level is the main force of the branch's credit risk, market risk and operational risk management, regularly up a Risk Management Department reports on the situation of risk management , to provide risk information and data.
Small joint-stock commercial banks in the existing basis of internal management level, learn the advanced experience of the West Bank, so as to establish a comprehensive risk management framework and functions that will help promote small and medium commercial banks with international standards, the fierce competition in the future truly sound operation and sustainable development.