Company A's Budget Management Research Based On Policy

During the "Twelfth Five-Year Plan" to the "Thirteenth Five-Year Plan" period,the scale of China's insurance industry has developed rapidly,and its influence in the entire economy and society has gradually expanded.The compr ehensive strength of the industry's main body has rapidly increased,but the market players also face some problems like extensive development and insufficient profitability.At the same time,with the continued deepening of the “fee reform” of commercial auto insurance in the property insurance industry,the auto insurance business,which accounts for 70% of the industry's scale,suffered losses,and the profitability of the entire industry was further reduced.In the new round of market competition cycle,how to strengthen the market entity through comprehensive budget management,improve the company's profitability through refined management,have become the key to the break of the property insurance business.Firstly,on the basis of systematically combing the theory of enterprise budget management,enterprise operation management and the system and practice of budget management of state-owned enterprises,and on the basis of corporate governance theory,incentive theory management,comprehensive budget theory and operation management theory,this paper makes a theoretical analysis of the relevant impact of the construction of Policy-based budget management system.Secondly,this paper introduces the basic situation,organizational structure and budget management system of A company,points out that there are some problems in the implementation of the company's budget management,such as the incomplete role of budget co-ordination,insufficient rigid constraints on budget objectives,insufficient reflection of real operating performance and insufficient participation of business lines,etc.,and points out the main reasons for this situation.It is the fact that the budget management of has not been fully integrated into the insurance policy and runs the insurance policy throughout the enterprise budget management,resulting in the lack of insurance policies in the short-term and long-term model tools of budget preparation and the lack of closed-loop based on the policy,which will inevitably lead to the incompleteness of risk tracking and business assessment system.Then,in order to implement the linkage mechanism of fee,compensation and performance,the construction idea and organizational structure of the new budget system are designed.Based on the policy and the goal of the linkage mechanism of business and finance,the basic work requirements of the budget system are reconstructed from three points of cost-income ratio,resource allocation and documentary budget management,and the policy cost rate driven by the policy,and the function design is carried out.Through analysis,a new budget management system promotion plan based on policy is given.Finally,in order to realize the policy-based budget management system,A company needs to optimize the organizational management structure,personnel training system,budget-based internal audit and enterprise performance appraisal system to ensure the effective operation of the new budget system in order to reconstruct the policy-based budget system.The innovation of this paper is that a new budget management system has been reconstructed for A company.The budget management system based on policy can achieve the goal of improving the company's operating efficiency.