Construct And Application Research On Internal Control And Risk Management Framework Of Enterprise

The core of an enterprise's competitiveness and viability is the ability to master the risk fully and effectively, build a good risk management framework and system and an appropriate risk pricing strategy for profit. Therefore, an Enterprise Risk Management is the center of the internal management, whose status has risen to the enterprises' strategic development in the whole management system. The Enterprise Risk Management Framework, which is promulgated by COSO committee based on the overall Internal Control Integrated Framework in 2004 represent the highest level of the internal control, and it also marked the arrival of the Enterprise Risk Management era.This dissertation addresses on Internal Control Integrated Framework and Enterprise Risk Management constructing and applied research. The paper builds on a cash flow risk management framework of selected example of enterprises combining the academic research and the empirical analysis. The main contributions are as follows:(1) The development of internal control is deeply studied, and the COSO Internal Control Framework and Enterprise Risk Management Framework are conducted for the Comparative Study.(2) The internal control report in China is compared analysis with COSO in order to discern their similarities or differences. The significance and enlightenment of COSO framework are discussed by analyzing the CAO (China Aviation Oil Corporation) incident.(3) The status of internal control in China is analyzed. To solve the problems such as functions of the board with the lack of internal control and the enterprise management above the internal control, we introduce some solutions for the standardized and perfect the internal control framework.(4) Using the COSO theory, the empirical research is implemented. The problems of cash flow management are analyzed with the example enterprise. The cash flow risk management framework is constructed to improve the enterprise's risk management capabilities, prevent and respond to various risks, and protect the enterprise development healthy. Finally, the framework has also some significance to other enterprises.