Study On The Internal Control And Risk Management Solution

Enterprise internal control and risk management has been a hot point during recent years. Internal control and risk management is a significant part of modern enterprise management. It grows with the original enterprise management, playing a indispensable role in the whole corporation. The traditional internal control and risk management action is mainly based on a great deal of document and manual operation. Obviously, this mode is not only ineffective and high cost, but also error prone in some business area with complex logic. Along with the government controls the companies more and more strictly, it becomes a legislative compliance concern for the whole corporation. As a result, many software systems which aim to solve these problems emerge as the times require. However, it is not a long time for the study of the enterprise risk management, and the manual way spread through the corporation. It was just the last few years that assisting the risk management with the software tools. And these systems mainly focus on the internal control in some specific areas or some specific industries, especially on the legislative compliance. So it is inevitable that these are some limitations in these kinds of systems.This paper analyzes the potential requirements of the enterprise internal control and risk management. It is based on a specific risk management system of a finance corporation. And it discusses several problems of the risk management system implementation, trying to device a more common solution on this area. In the control unit and control process aspect, the users can define the control unit and control process freely according to the abstraction of them. This design can make the system fits to the adjustment of the scope and type of the corporation. In the legislative compliance of the legal items aspect, different industries have very different types of management control rules, and with the time processes, the content of the bill item also change. It is very important for a software system to fit this variability. This paper tries to isolate these legal items to reduce the coupling of the whole system, so that the corporation can accommodate the change of the environment more agilely. In the efficiency aspect, the traditional software system has a very weak role in the risk management framework, the implementation put forwarded in this paper significantly increase the value of the software system for the enterprise management through the combining of the result of the control result and the entities in the corporation.