Are the internal control systems and risk management in the financial sector within the Canadian economy effective? A case study of royal bank of Canada (RBC)

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Table of contents

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 01: INTRODUCTION1

Background of the Study1

Brief introduction of Royal Bank of Canada1

Rational of the Study2

Significance of the Study2

Risk Management2

Aims and Objectives of Study3

Research Questions4

CHAPTER 02: LITERATURE REVIEW5

Risk Management5

Internal Control System5

Limitations of Internal Control System6

Corporate Governance7

CHAPTER03: METHODOLOGY9

Overview of Qualitative and Quantitative Research Approaches9

Overview of the Mixed Method Research Approach10

Research Method and Design Appropriateness11

Benefits and Disadvantages of Mixed Method12

Informed Consent12

Confidentiality13

Validity13

Qualitative Data Analysis14

Quantitative Data Analysis15

REFERENCES16

CHAPTER 01: INTRODUCTION

Background of the Study

The importance of internal control is emphasized in the banking industry and also in major corporations now more than ever in the past because of the emergence of widespread global financial activity and the fear of incurring huge financial losses without any prior warning or notice. Some of the major international bank failures and the huge losses incurred by banks in the financial market are the source of such a fear. As a result of major accounting and consulting firms are busy offering tailor-made systems to their clients while software developers are writing new programs to fit the changing needs of their clients. This study aims to analyze the effectiveness of internal control systems and risk management procedures in the financial sector within the Canadian economy.

Brief introduction of Royal Bank of Canada

Royal Bank of Canada operates under the corporate brand name of RBC with its subsidiaries on (RY on TSX and NYSE). It is Canada's largest bank with respect to assets and market capitalization, and one of the largest banks in the world, according to market capitalization. It is one of North America's leading diversified financial services companies, which provide personal and commercial banking services, wealth management services, insurance, corporate and investment banking and transaction processing services to its client on a global basis. It has a work force consist of approximately 74,000 full- and part-time employees who serve close to 15 million personal, businesses, public sector and institutional clients through offices in Canada, the U.S. and 55 other countries around the world.

Rational of the Study

The need for an internal control system can be seen from an analysis of the reasons for the failure of some major transnational banks. Besides bank failures, the reasons for the huge losses incurred by banks is more important to avoid such loses in future. The response of the bank regulators and auditors is ...