L Emperor Financial Risk Control System Research

On the basis of theory of financial risk control and author's study and analysis to Shengdi Company, the paper uses four elements of COSO report to analyze the effectiveness of the financial risk control of Shengdi Company, aimed at the existing defects, author designs a set of better financial risk control system.With the analysis the present situation and effectiveness of financial risks control, the conclusions are as follows:This company has relatively sound risk control environment, but company's rules and regulations and HR policies are insufficient, the management structure exists defects. This company hasn't specialized risk precaution department, doesn't make necessary data analysis to find the potential financial risks. This company's control activities are overall effective, but investing activities, financing activities, and compressive budget, cash and cash equivalents are lack of adequate supervision and control, especially, accounts receivable control is in great mess and invalid. The Board of directors and auditing department don't make effective supervision.The author's suggestions are as follow:To compile sufficient regulations and HR policies in line with company culture and value. To set up a specialized risk precaution department and assess the financial risks by accounting and financial indicators, To strengthen the financial control activities in investing,financing, to establish the customer credit rating system and cash and cash equivalents network, and to strengthen daily management of accounts receivable. To establish an independent auditing committee to fulfill effectively the internal auditing function.other productive companies can use those suggestions for reference.