Research On Internal Risk Control Under The Financial Shared Service Mode

With economic globalization and the continuous development of the Internet,the growing maturity of network ecology,concepts such as cloud computing,big data,Internet plus have emerged in,the launch of these new concepts have opened the era of a major transition.Under the Internet environment,in order to adapt to the times development,large multinationals and domestic large enterprises have seized the opportunity of information technology revolution,and have experienced an alarming development.Each enterprise group has a new strategic requirement.In order to implement the strategic requirements,the scale of the enterprise group continues to expand and establish molecular companies around the world.In order to implement strategic requirements,the scale of business groups is expanding,and molecular companies are being built around the world.The expansion of the scale brings more demand and market for the group,and it also brings a lot of pressure: the increase of management,the increase of operating institutions and the different geographical distribution,which make the financial management of the enterprise group increasingly complex.In response to these financial problems arising under the New Normal,the organizational form of the Financial Shared Service Center emerged as a result and was gradually accepted by various enterprise groups.The Financial Shared Service Center(FSSC)is an innovative financial management mode is based on information network technology has been applied and promoted.The production of this form is aimed at solving many problems,such as the lower efficiency of the financial management due to the expanding of the enterprise,as well as the more setting up of the financial department.High financial cost and the lack of control given by group company to the branch companies are also the problems.However,financial shared service center can provide high efficiency,high quality and professional financial services.It can also contribute to the standardization of accounting work.Moreover,it improves the overall financial information quality of the enterprise group,support the effective operation of the strategy and strengthen the core competitiveness of the group.At present,large-scale enterprise groups have gradually established financial shared service centers.However,most companies do not establish internal controlsystems specifically for financial shared service centers.The internal control system of a group usually aims at the internal control which established by the whole group,but it can't control the risk of the Financial Shared Service Center.Therefore,it is imperative to establish an internal risk system for the Financial Shared Service Center.This paper takes a review of the current status and development history of financial shared services and internal risk control and based on related theories of financial sharing and internal control,selects the Ordos Group which is a diversified operations group as the research object.The paper briefly describes Ordos Group and its financial status and the present situation of financial shared service.It has analyzed the application of financial shared service and also its risk exposed in the process of being used.Besides,it has also analyzed the factors causing the risks,and has made suggestions on risk control from organization structure,business process,information platform and employess.