The Study Of Life Insurance Company Internal Control Mechanism In ERP Environment

With the competition of market and the development of science and technology, life insurance company more deeply recognizes the importance of utilization of advanced means for enterprise general management. ERP (enterprise resource planning) embodies the most advanced theory of business management at present and offers enterprise the best information integrated scheme. The effective integration of life insurance company internal resources by ERP raises the efficiency of organization internal control and strengthens its effects. Furthermore, the potential risks of enterprise internal control grow and the changes of enterprise internal control system turn on because of ERP.This article starts with a premise of life insurance company applying ERP and explores internal control system in such an environment. Based on the acquaintance of ERP, it deduces how internal control systems change, and design the internal control framework of life insurance company, then give a example.The first chapter explains the backgrounds and trace of this paper. The second chapter analyzes the basis knowledge of Cybernetics, according to that, it discusses the content of"COSO", which is also a guard to the study of life insurance company internal control. The third chapter introduces the development and the basis knowledge of ERP at first. And, it also concludes the rules, function and the main parts of ERP used in life insurance company. The second part of the third chapter analyzes the influences of ERP system to life insurance company internal control, and points out that ERP system is an"information-feedback"control system, which can help life insurance company carries on internal control better. Under the method of Cybernetics ,the forth chapter proposes some key point designs to life insurance company internal-control which is following the path of"establishment of objectives, identification and analysis of relevant risks to achievement of the objectives, determining how the risks should be managed"from"Control environment, Risk assessment, Control activities, Information and communication, Monitoring"aspects. The fifth chapter tries to analyze the internal-control system in the Hunan branch of the CPIC as an example. The sixth chapter concludes that only the control of environment and information transfer are efficient, then the life insurance company internal control is efficient.