Research On The Optimization Of S Company’s Financial Risk Prevention And Control System From The Perspective Of Internal Control Environment

With the development of China’s economy,the importance of private enterprises has gradually become prominent,and their contribution to the economy is also increasing.However,the sustainable development ability of the vast majority of private enterprises in China is relatively weak,and the fundamental reason for this phenomenon is that enterprises lack sufficient attention and attention to financial risks.There are many reasons for high financial risk,and there are factors that trigger the transmission of financial risk in various activities such as production and operation of enterprises.Internal control is crucial in risk management and can effectively prevent financial risks.At the same time,the internal control environment,as the fundamental element of internal control,plays a crucial role in the construction and optimization of financial risk prevention and control systems.If an enterprise lacks a scientific and effective internal control system,it will greatly increase the probability of financial risks,thereby having a negative impact on the sustainable development of the enterprise.It can be seen that it is necessary to study how to prevent financial risks of enterprises from the perspective of internal control environment.Based on this,this paper uses the method of literature and case analysis,taking S Company,a local private enterprise in Ningxia,as an example,first analyzes the financial risks of S Company from the aspects of investment,financing,working capital and income distribution;Then,from the perspective of internal control environment,analyze the causes of financial risks in S Company from aspects such as organizational structure construction,development strategy,human resource management,cultural construction,and social responsibility;Finally,propose prevention suggestions based on the causes of financial risks.In the current context of economic development,market competition is becoming increasingly fierce,and enterprises are facing increasing development pressure.The author hopes that enterprise managers can be based on their own reality when governing enterprises,adopt scientific and effective financial risk management measures,and promote the continuous improvement of their sustainable development ability.From another perspective,the process of private enterprises developing and growing from a small scale is particularly difficult.Therefore,we hope that the research conducted in this article can help private enterprises deeply understand the important position of internal control environment in their own development process,and better avoid financial risks by building a sound internal control environment,promoting healthy and orderly development of enterprises.