Jiangling Group's Internal Financial Risk System For Prevention Research

We Anew the objectivity and destructiveness of risk ear1ier. After financialstorm of southeastem Asia and "9l1"event, the accidental essence of risk and itsinfluence to economy and enterprise are more protruding than before. TOday, ourenterprise grouPs reach the phrase of scale economy, wide-ranging operation andcomPlicated management. Because of this, risk appeared en1arged tendency, so, it ismore imPortant for enterprise to keep a lookout to risk.First of all, this paPer analyzed several concepts about risk, and pointed'thattraditional concePt of financial risk doesn't match enterprise grouP's operationactivities and financial activities now. paPer presented new concept of enterprisegrouP's internal financial risk. Meanwhile, paper defines the trait of operationactivities and financial activities of grouP and relationship of enterprise system andfinancial system. PaPer regarded enterprise risk and financial risk dialectical1y andthought we should be on guard risk from enterprise system and department system(financial system in this paPer).Secondly analyzed every enterprise system and discussed every system'sposition and function in grouP as wel1 as their risk and harm to group because of theirdefects. PaPer used true cases to show the problems mentioned above and concludedto against risk from enterprise system.Thirdly discussed financial system individually and against risk from departmentsystem, defined aspects about modem enterprise financial system such as establishinggrouP control center of finance, chief office of finance, group partial financial report.Fourthly, comprehended two pans above, constructed a system to against groupinternal financial risk, integrated systematically enterprise system, enterprise risk andguard measure.Finally, the paPer used Jiangling Group as an exa-mple to iIlustrate theaPplication and implementation of guard system of risk.