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Since allowed to establish new banks， many conglomerates created FHCs (Financial Holding Company) and new banks that are too much difficult to manage efficiently. Yet stockholders or stakeholders abused bank’s assets or benefited to other parties caused by the problems with corporate governance and external audit system。 Additional Taiwan credit crisis stroked the market in the end of 2005， card business has been shrinking and inevitably eroded the franchise and profitability itself。
Fewer research study that identify internal control process of Taiwan credit card whereby the operational risks that may arise from inherent risk family such as a business or function’s strategy、objectives、products and activities，where a high risk process for the more important controls must be tested quarterly while a lower than inherent risk process must be tested at a minimum, annually。 Addition to the effectiveness of the controls over those risks are evaluated、tested and monitored articulate business control environment，foster a monitor in cardholer’s credit limit usage and save unnecessary human resource and operating costs。 As a result, it may be intended to prevent 、mitigate or detect credit card crisis issued in the future。
By case study expect to reach following objectives :
1. Comparison of local bank and Y bank know that different internal controls especially for RCSA (risk control self assessment) are in place and operating management。
2. In order to facilitate the identification of key controls，it is useful to create and refer to an “end-to-end “ process flow associated with key inherent risk。
3. Establish and provide an independent oversight of the RCSA (risk control self assessment) framework for Taiwan credit card。
Internal control is the foundation for corporate governance。 To ensure the effectiveness of corporate governance carry out key controls and internal control procedures such as RCSA and internal audit that provide a reasonably high degree of assurance whereby the probability and(or) severity of an adverse event is reduced to an remote (acceptable) level。 In accordance to BaselⅡon the management of credit risk 、operational risk and market discipline，build a stable and high performance bank toward to internationalization one step further 。
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