Research On The Design Of Internal Control System Of H Company Which Based On Risk Management

At present,with the rapid growth of the socialist market economy,state-owned enterprises,as an important economic pillar of China,must reform their management and enhance their core competitiveness to face fierce market competition.Therefore,the construction of internal control system based on risk management is of great significance for deepening the reform of state-owned enterprises.H Company is a state-owned enterprise which engages in leachate and sewage treatment,landfill gas and solid waste resource utilization,and ecological restoration of contaminated soil.It is facing many risks in its actual operation process,such as the organizational structure risk,human resource risk,market development risk,production safety risk and some other risks.These risks seriously hamper the development of the enterprise,which may bring irreparable losses to it.H company is the research object of this paper.This article mainly discusses five core aspects.Firstly,it explains the related concepts of internal control and risk management and doing the literature review with related research.Secondly,it analyzes H company's internal control documents,such as the existing regulations,departmental duties and job responsibilities documents.At the same time,it sorts out key risks of H company by interviewing the middle and senior leaders.And thirdly,it discusses the risk assessment of H company relating to its current internal control system by issuing questionnaires.This part introduces the risk assessment method,dimensions(the probability and the risk impact),and the result of each risk.Then,in order to control those key risks,this research indicates how to establish H company's internal control system by improving internal regulations and developing workflows.Finally,it concludes the whole research and makes recommendations for improvement.Through the risk assessment of H company,this paper identifies thirty-three risks.There are eight major risks,including environmental protection and resource conservation risk,comprehensive budget risk,procurement business risk and capital management risk,etc.There are eight important risks,including safety production risk,legal affairs management risk,contract management risk and asset management risk,etc.The others are general risks.According to the principle of importance,this paper mainly studies how to optimize the design of internal control system for H company which based on the evaluation results of those major and important risks.