The Internal Control Of Rural Cooperative Economic Organizations Based On Risk Management

Hebei Province as a major agricultural province, the development of rural cooperative economic organizations attaches great importance by the provincial government. Which has played a pivotal role in the promotion of farmers’ income and to speed up the process of agricultural modernization. However, from the current development, the rural cooperative economic organizations bud late, covering the narrow, single services, especially the inadequate internal controls, resulting in management lags behind. The face of the risks that may be encountered in the course of business, such as internal management, external environment, technology, market factors, can not effectively identify and prevent which seriously hindered the healthy and orderly development of the rural cooperative economic organizations. Therefore, how to guard against various risks of rural cooperative economic organizations is a priority, to establish a comprehensive system of internal control based on risk management is the most effective means.Through to collect the relevant documents of the rural cooperative economic organizations at home and abroad, the paper has a comprehensive summary to the status quo of rural cooperative economic organizations in Hebei Province. The text is mainly discussed from six aspects: (1) the paper described the research background ,the purpose and significance of this study . Carefully combing and analysis on internal control of the status quo of the rural cooperative economic organizations at home and abroad, introducing the thesis research ideas and research methods; (2) This chapter which elaborate the connotation, characteristics, as well as risk management and internal control theory; (3) with the field surveys, This paper presents the problem which exists internal control of the rural cooperative economic organizations, including the member of the rural cooperative economic organizations have not recognizing the significance of internal control, the lack of a sound financial system, the organization is not perfect, decision-making unreasonable mechanism of checks and balances failure of the board of supervisors; no reasonable mechanism for the distribution of benefits, risk management awareness is weak, the lack of effective risk identification, assessment and response mechanisms, control activities are not in place, the lack of internal and external oversight mechanism: and the problem produced by deep-seated reasons for the analysis; (4) the combination of internal and external risks facing the rural cooperative economic organizations, and the paper analyzes constraints was of the risk management. Hebei Province rural cooperative economic organizations internal control system has been constructed which based on risk management . next the chaper also expounds the rural cooperative economic organizations internal control design objectives,principles, characteristics and content. (5)targeted internal control safeguard measures of rural cooperative economic organization; (6)make a summary and proposed deficiencies in order to make more in-depth study in the future.The innovation of this paper are: first, through literature analysis and field investigations, analysis of internal control problems to the rural cooperative economic organizations; Secondly, the construction of the internal controls system of rural cooperative economic organizations based on risk management in Hebei Province, Strengthen the prevention capacity to internal and external risks of rural cooperative economic organizations.