The Human Resources Department should be divided into two separate departments. One is the Human Resources Department, in which there is a deputy manager. Another is the Administration Department, in which there should also be a deputy manager. This division will ensure that the work under the authority of the Human Resources Department will be handled scientifically, neatly, quickly, and avoid the multi-tasking.
A bank can develop partly thanks to the contribution of its staff. Staff is a factor in the control environment, the person who carries out the control procedures. Human resource policy is built on the principle of ensuring compliance with the Labor Law and related legal documents.
Reward policy is not really effective. Training policy is not systematic. Branch has not periodically rotated staff.
The Branch needs to supplement the reward policy in the implementation of the assignment of capital mobilization targets to staff in each department. When implementing the assignment of capital mobilization targets to staff, if any staff exceeds the target, the Branch applies the policy of rewarding the staff with an additional month's salary to motivate them to contribute long-term to the Branch, promoting their best efforts in their work. Every year, any staff with achievements in contributing to the Branch will receive a productivity bonus from the Board of Directors. Implement the planning of staff for leadership positions when they are capable and have contributed to the Branch.
Open training classes for newly recruited staff must be conducted during the probationary period, before being officially accepted to work. Open training classes for working staff so that they can have a deeper understanding of the profession and at the same time grasp new regulations on the profession. Open soft skills classes on communication and professional ethics for staff to improve the quality of transactions and control. Orientation for staff who need to study more in the right major to serve the practical work of the position they are undertaking, avoiding
avoid wasting time, but apply it to reality. Organize professional qualification tests every three months to promptly grasp the weaknesses and shortcomings of staff to have training directions.
Rotating staff every 6 months will ensure objectivity, prevent long-term staff from colluding and colluding with each other to make mistakes, and create favorable conditions for staff to learn and master many professional skills, avoiding mistakes. Thereby, discovering and exploiting the strengths, strengths, and weaknesses of each staff to have the most effective work arrangement.
The Internal Control Department, with its control officers, in addition to in-depth professional training in all areas of operation, needs to be more fully trained in the necessary inspection and control skills to detect unusual transactions or signs of fraud in daily transactions, and to recognize fake documents and fake signatures. Only then can the internal control work of the branch achieve the best results.
Planning work, planning requires coordination between the departments of business planning, accounting and treasury, human resources administration and other departments. To set out the level of assigned planning targets that are appropriate to the actual capabilities that the branch can achieve. The coordination mechanism between departments on planning needs to be clearly and specifically stated in writing to the departments, each individual understands and on that basis has an implementation plan. If the planned targets are exceeded, the Branch has a reward policy that is appropriate to the regime to promote the spirit of effort, and needs to have a detailed plan; for example, in the plan on capital mobilization, there is only a total capital target, it is necessary to have additional capital structure targets divided by term: non-term deposits, term deposits over 12 months, under 12 months. Through these targets, managers balance resources, have a basis for using capital effectively.
4.3.2. Complete risk assessment
The principle of risk assessment is to carry out a risk assessment.
correct process from goal setting, risk identification and analysis.
The Board of Directors has not clearly recognized the importance of identifying, analyzing and assessing risks for the entire operations of the Branch. Credit risk assessment is not complete. The Branch has not applied any specific risk assessment model.
Need to raise awareness of the importance of risk identification, analysis and assessment: Open training classes on risk assessment. Organize seminars inviting external risk assessment experts to learn and improve understanding of risk identification, analysis and assessment.
Branches need to apply the SWOT model or the 5F model, the PEST model to carry out the work of identifying and assessing risks. Through the methods applied according to these models, the branch will discover what changes the risk assessment process that the branch is currently implementing needs to make the risk assessment effective.
The branch should establish a department called Risk Assessment Department. The Risk Assessment Department consists of 3 officers, including managers and executors. The department specializes in assessing general operational risks of the entire branch. The officers of the department conduct research to identify types of risks. The officers of the department coordinate with officers of specialized departments to closely analyze risks and propose measures to prevent and handle risks. Assess the frequency of risk occurrence and the level of damage caused by risks during the operation of business operations based on discussions between risk management officers and officers directly in charge of transactions and the internal control department.
In credit activities, the Risk Assessment Department and the Business Planning Department should focus on assessing credit risks before and after loan approval.
By collecting and checking information about the borrower. If the customer's credit limit is large, the risk assessment officer and the appraisal officer will conduct an inspection and make an assessment of the customer, thereby approving the loan to avoid future risks. It is necessary to forecast the credit risk that is likely to occur and the level of occurrence for each loan, each type of loan, and lending sector.
4.3.3. Perfecting control activities
The principle of completeness must ensure the full and correct application of the principles in the design and the correct application of the principles in the control activities.
At the Branch, the principles of assignment and division of tasks are not clear, one job position is assigned to perform many functions. The control work is not specified in writing in a unified manner, the control procedures for activities and operations are formalistic, not implemented seriously and fully. The approval of documents is not specified. Credit activities and accounting control procedures are not good and errors still exist.
Specific solutions:
The principles of assignment of tasks, authorization of approval, and non-concurrent holding of positions in control activities must be thoroughly used and seriously implemented from the Board of Directors to the departments. The steps of the control procedure in the process of checking all business activities must be seriously and fully implemented. Raise the sense of responsibility of each officer in the activities as well as in the control process.
Principle of non-concurrent holding, branches need to re-study the organizational structure to ensure the principle of non-concurrent holding, independently perform post-audit operations in a separate department, not let the accounting department head be in charge of controlling both the transaction and post-audit sectors.
The principle of authorization and approval clearly stipulates that the director authorizes the deputy director in charge of a field of activity of the Treasury Accounting Department to sign and approve deposit transactions. Before the deputy director signs and approves the deposit contract between the branch and the treasury service center, the manager in charge of the contract management department must check and sign to confirm that deposit contract.
To complete credit control activities, the Director assigned a Deputy Director to manage credit in general, assigned a leader in charge of directly managing and controlling the credit sector in the credit department. Rotate the CBTD and deputy department leaders such as rotating the area, CBTD from one transaction office to another, from branch to transaction office, from transaction office to branch. Rotate periodically at least once every six months. This will ensure avoiding fraud, avoiding abuse of duties and responsibilities to make it difficult for customers to demand gifts from customers, and the results of customer control will be objective. The inspection and assessment are subjective, comprehensive, accurately reflecting the actual business situation of customers and credit quality to control loans well, provide effective solutions, and reduce bad debts. The Head of the Business Planning Department is proactive, manages, assigns, arranges, assigns, adjusts, and the personnel in the department adheres to the principle of "clear people, clear work, clear responsibilities". Strictly comply with pre-, during- and post-lending control procedures and cash flow management.
Regularly check the debt collection work of the Debt Collection Team by holding meetings.
Monthly debt collection status report.
CBTD, control officers must check and control the cash flow from the bank, consider whether the loan disbursement has been transferred to each other, whether it is related to the repayment deadline of other related borrowers, and whether there is debt restructuring. Related customer groups, a borrower has
Credit relationships at many branches or other commercial banks. Assess the financial capacity of each customer, thereby assessing the financial potential of that customer group, recommending that the Branch take measures to handle and adjust the investment structure to ensure safety. In case the customer has relationships with many branches, it is necessary to compare the financial statements at the time the customer sends them to the branches to assess the authenticity of the financial situation and financial capacity of the customer; consider the time of borrowing and repaying between branches to determine the possibility of debt restructuring. For third-party secured assets, it is necessary to control the legal documents when the representative of the mortgagee or pledger signing the security contract is not the owner of the asset. Customers with debt that has been repaid with reserve funds need to pay attention to the branch's collection urging, new loans and the development prospects of the enterprise for new investment.
To complete the treasury accounting activities, the Head of Department needs to conduct surprise inspections of the activities of each business area, periodically check the data of each specific accounting section on the general accounting system, promptly detect errors and discrepancies to have timely handling measures. The department responsible for the internal inspection and control of the Branch proactively develops and submits to the leader plans to inspect the accounting section at its Branch on a monthly and quarterly basis, and cross-checks between transaction offices.
4.3.4. Perfecting the information and communication system
The principle of information and communication systems is to be fast, accurate, timely, and meet management and control requirements.
The accounting information system is still limited in the process of controlling the circulation of documents, does not emphasize the role of business control in re-control, and has not established separate reports for branches.
Specific solutions on Accounting Information Systems
Circulating document control, for checking the basis of accounting entries, the post-audit department is only responsible for checking the implementation on the machine of the GDV, the GDV is responsible for checking the accompanying documents as the basis for implementation to both ensure the requirements of the internal control system, increase labor productivity, improve operational efficiency, and clearly define the responsibilities of each department in a transaction.
Accounting reporting system, the Board of Directors should require each department and each business area to add some reports. According to management requirements, business activities at the Branch can have separate report forms to have full information about the three service areas, capital mobilization, and lending.
The author would like to propose the following sample book:
Table 4.1: Report on mobilized resources Month.... year....
Unit: VND
TT
Staff code | Full name | Department | Customer code | Guest name row | Number of savings books save | Term send | Deposit amount | Note | |
1 | 124020700216 6 | Tran Huyen Trang | KTNQ | 12402895678 91 | Nguyen Van Huy | IC22066 6 | 3 month | 80,000,000 | |
12402865466 66 | Original Thi Hoa | IC22087 99 | 1 month | 10,000,000 | |||||
Total | 90,000,000 | ||||||||
2 | 124020789899 9 | Nguyen Phuong | KTNQ | 12402865463 45 | Original Thi Thoa | IC22087 98 | 1 month | 50,000,000 | |
….. | …….. | ………. | … | ….. | |||||
Total | 80,000,000 | ||||||||
… | … | … | … | … | …. | …. | … | .. | |
Total | |||||||||
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CONTROLLER
(Source: Author's proposal)
Meaning of the Funding Source Report: Provides information on the capital mobilization situation of each officer in each month. This report shows which officers have been active and tried hard in capital mobilization, thereby controlling the capital source and providing information on the activities of which officers and departments are working effectively.
How to prepare: The Treasury Accounting Department prepares the report. The Head of the Department will assign an officer to monitor the capital mobilization situation of all Branch officers each month, from the first day of the month to the last day of the month. The monitoring is shown on the report including the columns: serial number, officer code, officer name, department, customer code, customer name, savings book number, deposit term, deposit amount. After the report monitoring is completed, the officer who prepared the report will sign to confirm and have the signature of the controller, who is the Head of the Treasury Accounting Department.
The deadline for submitting the report to the Director is the 2nd of the following month, before the meeting date so that the Director can evaluate and provide direction in the meeting on the capital situation as well as the work efficiency of the staff.