Research On Financial Risk Management And Control Of S Group Based On ERP Environment

In recent years,financial risk management and control has become an important aspect of enhancing core competitiveness of enterprise groups.With the rapid development of information technology,ERP system has been widely applied to enterprise groups for its strong permeability,timeliness,transparency and accessibility.Therefore,in the ERP environment,it is of great practical significance to study the financial risk management and control capabilities of enterprise groups.The financial risk management and control of enterprise group includes two aspects:financial risk management and control model and financial risk management and control tools.The financial risk management and control model refers to how to deal with the financial relationship between the parent and subsidiary companies in the enterprise group.Financial risk management and control tools refers to the specific control measures of the parent company,which includes defining the corporate financial function,constructing the information management platform,managing overall budget,evaluating performance and strengthening of the internal monitoring.ERP system runs through all aspects of enterprise group financial risk management and control.This paper,taking S group as the case,studies the group's financial risk management and control by field investigation and literature research.S group is a large group with many subsidiaries and diversified operation strategy,and has a world leading position in its field.The group's financial risk management and control in the ERP environment was reviewed by analyzing 5 key elements:internal financial information flow,capital control,overall budget control,performance evaluation and internal audit.It shows that the ERP environment promotes centralized financial risk management and control model,and therefore improves economic efficiency and the core competence.The paper also analyzes its shortcomings in the financial risk management and control measures,and the corresponding optimization measures,so that the S group can improve its financial risk management and control ability in the ERP environment.This paper has practical and theoretical significance in improving the financial risk control,which could be a reference for the Chinese business groups in the ERP environment.