Research On Enterprise Internal Control Framework Based On Financial Derivatives

Since the 70s of the 20th century, in financial innovation as the core of the financial revolution having become one of the world revolution occurred in two, derivative financial instruments at the core of the financial innovation is the core of the core of the revolution. In only 40 year, derivative financial instruments is the fastest-growing, the largest trading volume of financial instruments. Derivatives fission innovation and development, trading mechanisms and procedures of the increasing complexity, make the traditional uniform of the external monitor having encountered serious challenges. Financial innovation, especially the derivative instruments in hedging risks, enhancing financial institutions and economic entities or individuals in the financial market in effect, for internal control of studies made a new subject.Derivatives arise in large part to help businesses and financial institutions to avoid risks and access to income, if we can be carefully used, financial derivatives can be effective in reducing business risk. However, the leverage of financial derivatives, price volatility and other characteristics, determine its own also has considerable risks, particularly in the interests of investors lured, often ignoring the potential risks of trading, advance a small amount of margin speculation large contracts in order to obtain huge profits, in this case, if not properly controlled, it will suffer incalculable loss.Therefore, how to guide the market traders to establish a sound basis for the individual characteristics of its own unique internal risk control mechanism, strengthen the market of the main constraints of self-discipline is an important risk supervision of financial derivative components. As China's financial institutions and general business and gradually involved in the derivative business, strengthening study on the enterprise's internal control is particularly important.The article learn from the experience of the developed countries, absorbing the existing research results at home and studying the internal control of derivatives with developing vision can provide some suggestions and methods for the stability of our financial system and improving the internal control system at the enterprises which participate in business transactions in financial instruments.