A quantification model of internal control impact on banking risks using FMECA

In this paper, we propose an optimal assessment of internal control impact on banking risks by making automatic the residual risk estimation step of FMECA which is based on an inductive reasoning to study causes, effects of failures and their criticality. For this we defined three equations based on maturity and type of controls then we have obtain a mathematical model which is applied on 333 risks and 491 controls. This model is a new approach which reduce time for obtaining residuals risks likelihood and severity and decrease estimation error rate of residual criticality by harmonizing the evaluation method. Test results are satisfactory for all banking processes and types of risk.