Research On Enterprise-wide Risk Management Of Abc Accounting Firm

Under the guidance of the "size and competitiveness matter" policy for accounting firms from the Ministry of Finance since2005, the merging of accounting firms has caught on rapidly within just a few years. Due to takeover and transitioning issues, in addition to the typical external risks such as from litigation, management risks for accounting firms has also been on a steady rise; therefore, it has become essential for Chinese accounting firms to develop effective management to better prevent and regulate risks, for this will help them better deal with risks and minimize loss, thus, better opportunities for creating greater value.Based on the enterprise-wide risk management theory, firstly, by investigating and analyzing the current circumstances of risk management within Chinese accounting firms, their inherent problems, the existing types of risks as well as their assessments, the author came to conclude that there is great significance to establish enterprise-wide risk management system for Chinese accounting firms. Secondly, by using the ABC accounting firm as a case study, the author expounded in detail on the current circumstances of the ABC accounting firm as well as its existing problems and the causes for such problems, thus arriving at the conclusion that ABC need to re-structure their management system. Finally, by referring to the current conditions of the ABC accounting firm, the author re-structured the enterprise-wide risk management system for ABC and did subsequent assessment on its effectiveness.Through conducting empirical research, not only did this paper provided a new theoretical perspective for the structuring of enterprise-wide risk management for ABC, the paper can also serve as practical guidelines for ABC. Moreover, this paper can function as a reference for structuring effective enterprise-wide risk management for Chinese accounting firms and helping them better deal with risks.