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• Main Authors: Po-hsin Chen, 陳柏杏
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/19518629162528087775

碩士 === 東吳大學 === EMBA高階經營碩士在職專班 === 99 === Banks, not only contain capital liquidity and a demand supply function, but also directly or indirectly influence the stability of the financial market. Whether a bank is well-operated or not, it affects the development of the economy for the whole country. Traditionally, banks only provided deposit and withdrawal services, but now they have turned into distributors, selling diverse financial products .Due to the fast transformation of the banking sector, risks immediately occurred. A Review of the domestic and international financial institutions, showed a lack of well-constructed internal controls, and a failure to manage operational risks led to severe losses. These losses were no less than the losses from market risk and credit risk in Basel II. This study reviews the evolution of the internal control system over the years, provides a definition of operational risk in Basel II, and then gives case studies and discussion about recent fraud reports. 1. Analyze the modus operandi of corrupt officers and the way to avoid the risk management process. 2. For the transaction, operational risks arise when internal specialists fail to implement on control points designed by internal control systems. 3. Investigate the adequacy and insufficiency of the existing transaction flow on control points within internal risk control. This study wishes to help banks inspect their own records for similar omissions, so they may be able to prevent future losses and achieve the goals listed below: 1. Provide all the managerial risk details that are necessary for management to deal with transactions from the bank case study. 2. Set as a reference for other banking industries, and build a more effective internal control flow management and operational risk management system. 3. Through extensive research of similar case studies, provide useful advice for banks which have already incurred losses so that they may improve their current operational risk management systems. In order to achieve effective management it is necessary for banks to build a more systematic operational risk measurement, analyze the mechanisms of control and assessment, and conduct a more efficient way to decrease or shift operational risk. Through in depth case study discussions, the conclusion of this study is that internal control is a very important project that every member in the bank should participate in, implement, and execute. Banks need to establish standard procedures and internal controls to prevent employees from having similar situations to the case study occur. While setting operational flow, effective execution is an important factor. Here are some related suggestions: 1. If the cost of the banks’ design, execution, and monitoring of internal controls is greater than the estimated risk management, then the execution of internal controls is not cost effective. The problem is that banks can only estimate risk, so it’s essential to take into consideration key control points and then use actual content, processes, and resources to find a balance between competing with other industries and risk management. 2. When choosing samples, make sure the information of the population is complete so the design of the sampling method can be effective and useful. This will allow auditors to retain audit accuracy. This subject is worth an in-depth discussion in the auditing department of the bank.