Research Of Financial Risk Control Effectiveness On Company A

On the basis of the literature about financial risks and internal at home and abroad, this paper uses the five elements' standard and evaluation method of COSO (The Committee of Sponsoring Organizations of the Tread way Committee) report to analyzes the financial risk control effectiveness, which is up to whether the System is exist and whether it has been implemented effectively.With analysis of its effectiveness, the conclusions are as following: on the aspect of control environment, it is difficult to create effective control to managers on some investment projects just by board due to information asymmetry; on the aspect of risk assessment, company A has a huge amount of receivables because it belongs to Production enterprises, but the company dose not build responding customer credit investigation and credit rating classification system , and it dose not pay attention to the risk assessment by financial indicators which has weakened the financial risk control effectiveness; the company dose not draw up a detailed mechanism for segregation of duties which lead to the authorized management control system useless; on the aspect of the information communication and follow-up evaluation, company A is lack of follow-up evaluation to the investment and financing projects, so it can not make feedback to the changed condition. Therefore, Company A has internal control financial failure in financial risk.In view of this, improvements and innovation are as follows: such as an additional Investment Committee to strengthen the control of the investment manager; assessing the financial risks by financial indicators; the establishment customer credit investigation and credit rating classification system to control receivables, and strengthening the follow-up evaluation to investment and finance projects. These improvement recommendations are also useful to general productive enterprises.