Research On Operational Financial Risk Management Of Xing An Property And Casualty Insurance Company Based On Internal Control Theory

The insurance company’s operating performance is largely depends on the levelof its management for types of risk. Financial risk is the most influential one thatdirectly affects the company’s continuing operations and stable development. Propertyand casualty insurance company’s operating process involves many financingactivities that including huge risks, and internal control is an effective means ofenterprise risk management, therefore studying insurance company’s operationalfinancial risk management from an internal control perspective, and improving thelevel of operational financial risk management has important practical significance.Choosing Xing An Property and Casualty Insurance Company as the researchobject, this paper first carries on the literature review on the enterprise’s internalcontrol and financial risk management, and then on the basis of the theory of internalcontrol, risk management theory and financial risk management theory to carry outthe case of Xing An Insurer operational financial risk management analysis.In Case analysis section, this paper first analyzes the present situation and therisk points of financing risk during its capital operation process, and analyzes theperformance and causes of the risk in detail. In the problem analysis section, with thefive elements of internal control theory to carry on the analysis of Xing An PropertyInsurance Company’s operational financial risk management present situation, to findout the problems about its financial risk management in the internal environment, riskassessment, control activities, information,communication and su pervision. Last, forthe problems which exist in Xing An Property and Casualty Insurance Company, cometo specific countermeasures, including the following suggestions: Set u p a financialrisk management committee; to establish a financial risk warning mechanism focusingon the solvency; Strengthen the budget system, premium receivables and documentmanagement; to strengthen the insurance activities from ratemaking, underwriting andclaims settlement to reinsurance; to strengthen the construction of information backupand improve the audit supervision mechanism.