Construction Of Enterprise Risk Management System From Internal Audit's Perspective

With the changing market environment, enterprises are faced with the increasingly diverse and complex risks. The survival and development of enterprises directly related to the effective control and management of risks. Therefore, enterprises also should establish and improve risk management system of enterprises while constantly strengthening and perfecting the outside environment, which enables companies to maintain their own survival and development capabilities. With regard to enterprise risk management system, both theoretical research and practical application, domestic and foreign scholars have done a lot of research and discussion in this area. However, the research on constructing an enterprise risk management system from the perspective of internal audit is very little. In view of this, it is necessary to build enterprise risk management system based on the perspective of internal audit for an in—depth analysis and study with business reality, which in order to build enterprise risk management system to provide theoretical ideas and methodological guidance and to better identify risk, manage risk.This article first discussed the background of constructing enterprise risk management system from internal audit perspective, then analyzed the status of research of enterprise risk management system at home and abroad and noted the need for further research to obtained the theoretical meaning and practical value of this article.Second, the article discussed the basic theory of building enterprise risk management system based on the internal audit perspective, including corporate governance theory, the regulatory process theory, principal—agent theory, product life—cycle theory and the concept of risk management.Then, the article made a comparative analysis of the existing model of enterprise risk management framework and pointed out some problems in those existing models. At the same time, it analyzed the reasons for building enterprise risk management system based on the perspective of internal audit. Then the essay pointed out the basic principles of building enterprise risk management system based on the internal audit perspective. On this basis, the basic idea of building enterprise risk management system from the internal audit perspective was proposed, includes establishing a sound organizational structure and responsibilities distribution system, fostering enterprise risk management culture, improving internal environment of risk management; Conducting a comprehensive risk identification, assessment, control activities in the establishment of good risk management process; Establishing smooth flow of information and communication channels, giving full play to the internal audit oversight of the evaluation function.Finally, the article made an application research on enterprise risk management system based on the internal audit perspective and gave a conclusion of the essay, and also looked into the future of the study.