Research On The Optimization Of Internal Control Of GH Company Based On COSO-ERM

In the era of economic globalization,enterprises pay more and more attention to the impact of risk factors on internal management and operation.As a clean energy,the development of natural gas industry directly affects the national economy and people’s livelihood.Pipeline transportation is the safest and most efficient way to transport natural gas.Pipeline transportation enterprises determine the gas quality and gas safety of natural gas users.GH company is mainly engaged in the industry of natural gas pipeline transportation.although realized profit on diversification strategy,there are problems in internal control management,such that internal control concept is not updating,strategic objectives and risk control direction is not consistent,reviewing and revisioning is not efficient,performance risk identification is not accurate,means of information communication need to update the enterprise internal control system.COSO continues to implement and improve the enterprise risk management framework.Based on the compliance requirements for enterprise financial risks,the 2017 version of the framework proposes to improve the role of risk management efficiency in enhancing enterprise value based on corporate culture,strategy,performance and other aspects.The defects of enterprise internal control are examined from a more comprehensive perspective,which avoids the limitation of viewing enterprise risk solely from the perspective of financial risk.Domestic articles on the analysis of internal control problems of research enterprises in the framework of the 2017 edition still focus on the five elements of enterprise risk such as internal environment,risk identification and control activities under the framework of the 2004 edition.On that element they build an optimization system.Only in the guarantee measures of the optimization program is the design from the strategic or cultural perspective.According to the five key points of corporate governance culture,review and revision of COSO-ERM in 2017 edition,this paper analyzes the problems existing in the internal control of GH company and designs optimization plans through literature research,interviews and questionnaire survey.This paper is divided into seven chapters.The first chapter is an introduction.This paper mainly summarizes the research background and significance,internal control theory,domestic and foreign literature,research content and research methods.The second chapter introduces the theoretical basis.The concept of internal control,total risk management,main content and development of COSO-ERM framework are summarized.The third chapter briefly describes the general situation of GH company and analyzes the internal control status of the company.Chapter four analyzes the five problems found by GH company.Chapter five establishes the principles and ideas of internal control system optimization of GH company,forms the overall framework of optimization,and then realizes the internal control optimization of the company in five steps.Chapter six briefly discusses the guarantee measures of GH company’s internal control optimization plan.The seventh chapter summarizes the train of thought of this paper,draws the research conclusion,and analyzes the shortcomings of this paper.Many enterprises lack the concept of identifying the efficiency of internal control from the perspective of strategy and culture,and also fail to clarify the role of internal control measures in performance improvement.It is hoped that the cross-departmental coordination and exploration of major changes in enterprise risk factors,the method of risk assessment combining KPI and BSC to enhance performance execution,and the guarantee measures of 360°performance assessment proposed in the optimization plan of this paper can serve as a reference for other enterprises to optimize and upgrade their internal control system.