Research On S Gas Production Plant’s Internal Control System Based On Risk Management

Oil companies are faced with complex and diverse risks because of their special mode ofproduction and business practice. In order to prevent and control risks， and to ensure thehealthy development of enterprises， oil companies must do a good job in internal controland risk management. After successfully listed overseas， China’s oil companies havegradually established internal control system in order to meet foreign regulatory requirements.Besides， China’s issue of related regulation also promoted the development of the oilcompany’s internal control system. In practice， however， there still exist defects in the oilcompanies’ internal control system， and their internal control system and risk managementsystem have not yet been effectively integrated. In this paper, through the study of therelationship between internal control and comprehensive risk management, the article draws aconclusion that further improvement of internal control can be possible only when oriented inrisk management. Further research on oil companies’ internal control system based on riskmanagement is significant to the improvement of internal control system and the integration ofthe two management systems. This paper takes S gas production plant as an example anddiscusses the optimization design for its internal control system based on risk management.Several measures have been put forward to safeguard the implementation of the optimizationdesign.Firstly, the article illustrates the theory of internal control, risk management and theirrelationship with the methods of literature analysis and comparative analysis. Secondly, S gasproduction plant is taken as an example to analyze the status and problems of its internalcontrol system with the adoption of case studies, questionnaire surveys and fuzzycomprehensive evaluation method. Thirdly, the method of induction and deduction is used todiscuss the optimization design for its internal control system based on risk management.Finally, several measures have been put forward to safeguard the implementation of theoptimization design.The main contribution of this paper is the proposal of the optimization design for oilcompanies’ internal control system based on risk management in order to improve the level ofinternal control system and promote the integration of two systems. Hopefully, the conclusion of this paper can be a reference for the perfection project of S gas production plant’s internalcontrol, and bring new ideas to the research of oil companies’ internal control.