Bank of China Limited Takes Proactive Steps to Enhance Risk Management and Compliance
Significant Progress in Strengthening Risk Management and Compliance Mechanisms
In its latest annual report, Bank of China Limited revealed that it has made significant progress in strengthening its risk management and compliance mechanisms. The bank’s management emphasized the importance of internal control and case prevention, consolidating the liabilities of primary responsible parties and taking multiple control measures to improve the quality and efficiency of internal controls.
Enhancing Internal Control Governance
To promote internal control governance, the bank implemented the Basic Standard for Enterprise Internal Control and its supporting guidelines, following basic principles such as:
- Complete coverage
- Checks and balances
- Prudence
- Correspondence
This has led to a more reasonable delegation of work, well-defined responsibilities, and clear reporting lines.
Strengthening Financial Accounting Policy Framework
The bank also established and implemented a systematic financial accounting policy framework in accordance with relevant accounting laws and regulations. As a result, its accounting basis was solidified, and the level of standardization and refinement of its financial accounting management was further improved.
Proactive Measures to Prevent Fraud Risk
In addition, the bank has been proactive in preventing fraud risk, identifying, assessing, controlling, and mitigating risks. In 2020, it successfully prevented 178 external cases involving RMB384 million.
Operational Risk Management System
The bank’s operational risk management system has also been continuously improved through the application of operational risk management tools such as:
- Risk and Control Assessment (RACA)
- Key Risk Indicators (KRI)
- Loss Data Collection (LDC)
The bank has also enhanced its IT-system support capability, strengthened its business continuity management system, and optimized its operating mechanism to enhance operational sustainability.
Compliance Management
In terms of compliance management, the bank has improved its compliance risk governance mechanism and management process to ensure stable development and sustainable operation. It has:
- Strengthened anti-money-laundering (AML) and sanction compliance policies and procedures
- Optimized AML resource allocation
- Deepened AML efforts
- Strengthened sanction compliance monitoring and management
System and Model Building
The bank has also intensified system and model building, improved system functionality, and enhanced the establishment of a robust management framework for overseas compliance. It has:
- Refined relevant management policies
- Improved the compliance risk assessment programme
- Enhanced the compliance management capabilities of overseas institutions
Conclusion
Overall, the Bank of China Limited’s proactive efforts to enhance risk management and compliance have been recognized as a key factor in its stable development and sustainable operation.