A Corporate Group Risk Control Study

As a result of the further expansion of globalization, enterprises will face more and more uncertain factors. Although it is unpractical to completely eliminate risks and their influence, risk control is still an important part of business operation. Risk control is the lifeline of enterprise survival and development. It is a special binding agent, can push enterprises to develop in a healthy and sustainable way by integrating and coordinating various elements and sources of enterprises. It is far more a firewall, enables enterprises to possess filter function and immunity capability, therefore to effectively reduce or against various risks.Internal control is the brought product when social economy develops to a certain stage. It has positive significance to prevent fraud, reduce losses, improve corporate profitability and ensure funds safety and integrity. Along with the rapid development of economic globalization and integration, enterprises face much more risk amount and impact, and risk control is valued and accepted by many more enterprises. Under such circumstances, COSO released"Enterprise Risk Management ---Integrated Framework"which strengthens risk management based on contents of existing internal control and enables internal control becoming an integral part of risk management.As an emerging management discipline, risk management originated from United States in 50s last century. At that time it was mainly to work against crisis in business operation. In 21st century, American enterprises have begun to adopt scientific methods to manage risks, gradually accumulated rich experience in practice. Whereas in China, the study on risk management started relatively late (in 80s, 20th century); there are still many enterprises who have no enough understanding and experience accumulation to it, mainly showing on: poor risk awareness, paid no more attention; risk management surroundings not formed; be lack of effective risk assessment monitoring system; separated risk management and internal control; an effective risk management system not formed.Established for more than 20 years as a listed company in China, the above-mentioned similar problems also exist in risk mangement of A Group, particularly in the lack of a complete set and scientific risk control system, which will be a chock point to restrict A Group to become larger and stronger .Risk management surely will become a hot issue of global business management. This paper aims at combining modern risk management theory, especially learns from the basic thoughts and requests of American COSO"Enterprise Risk Management"and China"The Implement and Operation of Basic Standard for Enterprise Internal Control", based on business group case studies, by analyzing critical control point of business group operation activities, risk control matrix of design system and risk control evaluation system, and thus to guide the enterprise standard operation and control risk.