Risk Analysis And Prevention And Control Of Financial Sharing In Group Enterprises

In modern society, the scale of group enterprise increase heavily under the environment of economic development, market competition and economic globalization. In order to expand market and win the competition, they constantly set up embranchments. Subsequently, more financial departments, rising cost, large amount of calculation, information redundancy gradually become a universal phenomena. In 2005, ZTE group enterprise reformed the financial management mode through "process reengineering, centralized accounting, establish standards, Shared services". They established the Financial Shared Services Center(FSSC) and finally solve the above problems. Their success lead FSSC trend and get the Ministry of Finance’s attention. However, the process has to face the change of organization, personnel, processes, systems and external environment, it is complex and difficult. Some group enterprises failure to deal with the problem and get into troubles, and some other large state-owned group enterprises dare to implement it. When analysis its reasons, we find that the risk problem is ignored.Based on scale economy theory, competitive advantage theory, standardization theory, process reengineering theory and risk management theory, this paper choose the perspective of group enterprise implement FSSC’s risk to analysis its risk problem and put forward the risk countermeasures. Thesis research mainly around the following aspects: Firstly, from financial sharing concept to discuss the differences between traditional financial management mode and financial sharing mode, then analysis the advantages of financial sharing mode, put forward the connotation of group enterprise implement FSSC’s risk and analysis its characteristics. Secondly, according to COSO internal control and the overall enterprise risk management framework, identify the group enterprise implement FSSC’s risk and establish risk index system, which include strategic planning, organization and management, personnel changes, processes changes, information system construction, tax and law. Then analysis the risk consequences and make assumption between the risks and the consequences. Finally using the questionnaire survey and mathematical statistics method to classify, sort risk and carry out the related degree analysis on different risks and consequences. Thirdly, according to the result of risk analysis and different risk categories, combined with ZTE FSSC’s implementation and management methods, puts forward some countermeasures for risk prevention and control.