Enterprise Financial Internal Control And Risk Management

The establishment of a financial internal control system should be based on the accounting law, the company law and the basic accounting standards. It should also be combined with the specific circumstances of the enterprises to facilitate the enterprises to effectively enhance internal management, guard against operational risks, protect unit assets, protect the interests of the three party, and enhance the efficiency of enterprises.

Specifically, the establishment of enterprise financial internal control system should conform to the following principles:

(1) the principle of legality;

(2) integrity principle;

(3) the principle of pertinence;

(4) the principle of consistency;

(5) adaptability principle;

(6) the principle of economy;

(7) applicability principle;

(8) the principle of development.

Specifically, the framework of financial internal control system can be divided into the following five aspects:

(1) a principled financial and accounting system;

(2) comprehensive management system;

(3) financial revenue and expenditure examination and approval reporting system;

(4) financial institutions and personnel management system;

(5) cost and expense management system.

In the relationship between internal control and risk management, sometimes it seems that risk management and internal control are independent of each other. But with the continuous improvement and more comprehensive internal control or risk management, they must be intersecting, merging and unified until two.

In the process of financial risk management, enterprise groups must follow the following principles:

(1) the principle of balance between income and risk;

(2) the principle of appropriate risk and limited commitment;

(3) advance

The principle of effective avoidance;

(4) the principle of hierarchical decentralization.

Financial risk management is a continuous, cyclic and dynamic process, which includes establishing risk management objectives, risk analysis, risk early warning, and so on.

And risk management.

Generally speaking, the following strategies can be adopted to deal with financial risks.

(1) risk avoidance strategy;

(2)

Acceptance strategy;

(3) risk prevention strategy;

(4) risk shifting strategy;

(5) Derivative Instruments hedging strategy.

The establishment and perfection of risk management system of enterprise groups should start from 3 aspects:

(1) establish and improve the prevention system of financial risk management and control;

(2) establish and improve financial risk identification and early warning system;

(3) establish a decision-making management system for financial risks.