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1、原文：Managing Core Risks In Banking: Internal Comtrol&ComplianceInternal Control Policy1.1 OverviewBanking has a diversified and complex financial activity which is no longer limited within the geographic boundary of a country. Since its activity involves high risk, the issue of effective internal con
2、trol system, corporate governance, transparency, accountability has become significant issues to ensure smooth performance of the banking industry throughout the world. In many banks internal control is identified with internal audit; the scope of internal control is not limited to audit work. It is
3、 an integral part of the daily activity of a bank, which on its own merit identifies the risks associated with the process and adopts a measure to mitigate the same.Internal Audit on the other hand is a part of Internal Control system which reinforces the control system through regular review.Accord
4、ing to an IMF publication Internal Control refers to the mechanism in place on a permanent basis to control the activities in an organization, both at a central and at a departmental/divisional level. A key component of effective internal control is the operation of a solid accounting and informatio
5、n system.In Bangladesh analysis on the performances of the banks has pointed out that an effective internal control system could have contributed significantly in improving the performance of the commercial banks if the control culture is brought in through policy guidelines and structural changes a
6、t these banks.1.2 DefinitionInternal control is the process, effected by a companys board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the effectiveness and efficiency of operations, the reliability of financial rep
7、orting and compliance with applicable laws, regulations, and internal policies.Internal controls are the policies and procedures established and implemented alone, or in concert with other policies or procedures, to manage and control a particular risk or business activity, or combination of risks o
8、r business activities, to which the company is exposed or in which it is engaged.1.3 Internal Control EnvironmentThe internal control environment is the framework under which internal controls are developed, implemented and monitored. It consists of the mechanisms and arrangements that ensure intern
9、al and external risks to which the company is exposed are identified; appropriate and effective internal controls are developed and implemented to soundly and prudently manage these risks; reliable and comprehensive systems are to be put in place to appropriately monitor the effectiveness of these c
10、ontrols.Each company needs to have in place an appropriate and effective internal control environment to ensure that the company is managed and controlled in a sound and prudent manner. The factors which together comprise the control environment are: *a board of directors that is actively concerned
11、with sound corporate governance and that understands and diligently discharges its responsibilities by ensuring that the company is appropriately and effectively managed and controlled; *a management that actively manages and operates the company in a sound and prudent manner;*organizational and pro
12、cedural controls supported by an effective management information system to soundly and prudently manage the companys exposure to risk; and*an independent audit mechanism to monitor the effectiveness of the organizational and procedural controls.1.4 Objective of Internal ControlThe primary objective
13、 of internal control system in a bank is to help the bank perform better through the use of its resources. Through internal control system bank identifies its weaknesses and takes appropriate measures to overcome the same. The main objectives of internal control are as follows:*Efficiency and effect
14、iveness of activities (performance objectives).*Reliability, completeness and timelines of financial and management information (information objectives) * Compliance with applicable laws and regulations (compliance objectives)1.5 Policy Guidelines For Internal Control1.5.1 Responsibility of the Boar
15、d of Directors*The overall responsibility of establishing broad business strategy,significant policies and understanding significant risks of the bank rests with the Board of Directors.*Through the establishment of Audit Committee the Board of Directors can monitor the effectiveness of internal cont
16、rol system. Bangladesh Bank has already instructed the banks to establish Audit Committee (Appendix 5.4).*The internal as well as external audit reports will be sent to the board without any intervention of the bank management and ensure that the management takes timely and necessary actions as per the recommendations.*Have periodic review meetings with the senior management to discuss the effectiveness of the internal control system of
