Analysis On The Construction Of YT Group’s Management And Control System Based On Financial Management And Control Process

Contemporary large-scale investment groups are showing three trends in developing their management and control systems, i.e.(1) popularization of IT applications,(2) platform-based management of processes and (3) further concentration of group strategic management and control onto financial management and control. The3trends are due to their characteristics such as complexity in equity structure, largeness in total asset, diversification in industrial types involved, numerous levels in financial management, and numerous participations in industrial merger, acquisition and re-organization. Therefore, it is significant to strengthen a large-scale investment group’s management and control system. A large investment group’s future is filled with both challenges and opportunities; in order to further improve its asset size, asset quality and return on asset, such a group has to work out an advanced financial management and control system.This paper, on the background of YT Group’s strategic transformation to a financial holding group, based on analyses of the Group’s finance, strategy, internal control, existing problems and development needs, helps design the Group’s financial management and control system by means of establishing its financial management and control process. First, this paper sorts out the theories on optimal group management and control system. Second, in view of YT Group’s strategy, internal control status and existing problems, this paper provides the paths and requirements for the Group to complete its transformation in management and control. Third, in line with YT Group’s demands for financial management, and control process, this paper proposes the objectives and principles for the Group’s financial control process and designs the process’s architecture and functions. Fourth, this paper designs YT Group’s financial management and control system and, in line with the process capabilities to flexibly make definition and to manage historical financial data, this paper also designs a financial control system based in the framework of financial management. The design of YT Group’s management and control system based on financial management and control process also involves the designs of various systems’working scopes, flows, authorizations and working principles, methods and steps.In this paper, the design of YT Group management and control system based on financial management framework contains two layers:one layer is to design the Group’s financial management and control process, with the focus on enhancing the efficiency and benefits of the workflow of its financial control system; another layer is to further design the Group’s overall financial management and control framework and ideas, with the focus on enhancing the financial management decision-making status and functions, enhancing the Group’s budget control and asset using efficiency/benefits, and on effectively controlling its financial risks.