Research On Enterprise Internal Control Based On COSO-ERM

Guarantee industry is an emerging industry in China, with the rapid development of the economy of our country, the guarantee industry has been rapid development, especially after the world financial crisis in2008,China promulgated series policies to support SMEs, guarantee enterprise also ushered in the development opportunity. However, due to the particularity of guarantee industry, guarantee companies from the date of birth is internationally recognized as a high-risk industry, there are "not for three years to guarantee enterprise, pay a hell", especially the private enterprises, many are lack of financial strength and the strong support of the national financial institutions, how to perfect the guarantee enterprise internal control based on risk management, became the urgent problem that need to be solved. Guarantee companies operate the credit and the risk, the essence is the prevention and elimination of risk. As an intermediary position of financial institutions, high risk is determined by the nature of guarantee business. How to establish an effective risk management internal control system, become the core problem to development healthy and stable, this is my starting point for thesis writing. During the management practice of the enterprise, the international enterprise accept the COSO report, formed risk management system with their respective industry characteristics, these system also provided a theoretical basis to study the guarantee corporation internal control system based on ERM framework.Guarantee institutions is the intermediate chain between SMEs and banks, as a complement to bank credit business, its risk is greater than the banks, but the ability of controlling the risk for bank is better than the guarantee companies, so guarantee companies must have more ability of risk management than the bank in order to survive and develop. China’s financing guarantee industry is in the initial stage, existing problems of risk mitigation measures. In March2010,seven ministries jointly issued the《Guarantee corporation management interim measures》,"rectification" become the first keyword to guarantee industry. Promote the work of rectification of entire industry, according to the prudent concept to establish guarantee institutions of corporate governance, internal control and risk management mechanism has become the primary task of regulatory agencies, security agencies affected by the slowdown, at the same time guarantee institutions also pay more and more attention to improve its internal control to enhance the ability to resist risks, realize the healthy development.In this paper, the angle of internal control based on the ERM framework, take the WL Guarantee Corporation as an example, through the control of the internal investigation, analysis of the shortcomings and improvement measures are proposed. The full text was divided into6chapters, the first chapter, introduces the background and significance of topics, the research methods and ideas, the second chapter, introduce the guarantee theoretical research, the third chapter of internal control based on the ERM framework, sequence analysis of the internal control, the ERM and the relations between them, and provide a theoretical basis for the full text, the fourth chapter based on the third chapter, echoing the internal control and the title of this article, introduced our country guarantee enterprise development and status, guarantee enterprise based on the necessity of internal control, ERM framework security enterprise risk points and control measures of internal control structure of the ERM framework and the business processes based on, take the progressive method, in-depth research on upper layer. The fifth chapter and the6chapter, combined with the actual case analysis of present situation, defects and improvement measures of internal control system of WL Guarantee Corporation, this part is the focus of the text.The main contribution of this paper is:introducing ERM framework concept combined with the characteristics of security industry, new perspective based on ERM framework develop the practice in guarantee corporation, combining the qualitative and quantitative analysis methods, analyzed the current internal control situation of WL Guarantee Corporation, which have a certain reference significance for other guarantee corporation, and has a positive significance for standardizing and consolidating the security industry.