Research On Financial Risk Management Of China Mobile Branches

Since the subprime crisis of the United States broke out in 2007, the global financial crisis has brought a heavy blow to the development of the world economy, and even a threat to the survival of many enterprises. By the influence of the financial crisis, the economic development of all countries in the world are beginning to appear the slow phenomenon, some countries even appear the negative growth. As a developing country, our country has the same pressure under the influence of the financial crisis. China Mobile Company is a large company and always walks in the forefront of China’s enterprise group. In this kind of situation, the economic pressure that China Mobile Company is facing is very severe. Especially in the new economic environment, How to make an effective and reasonable system of financial risk management and supervision has become an urgent problem to be solved.The financial risk of China mobile branches mainly includes multiple aspects of the investment risk, operation risk, distribution of income risk, financing risk and so on. To avoid the risks of business finance, perfect risk recognition system and processing mechanism needs to be built. Through the reasonable analysis of management theory on financial risk, we can effectively establish the reasonable financial management and supervision system. The establishment of enterprises’ financial risk management system is to ensure the enterprises’continue development and robust survival. Today, in the fierce competition, only perfect financial risk management can make the enterprises establish the competitive advantage just like financing, investment, etc. China Mobile is China’s leading enterprises, it especially needs to strengthen the financial risks of enterprises, and this is the only way to make China Mobile develop to the healthy, scientific, reasonable direction.As a member of leading enterprises in China, China Mobile has already started to implement and promote the centralized financial management to improve the efficiency of financial management risk and financial management. This form is helpful for the enterprises to manage enterprise groups, especially the financial management; it can keep pace with the times and the tide of world science and technology and reduce the risk of internal control. In this age of centralized financial management, this is an important development trend. In our country, there are many enterprises which carry out centralized financial management, such as ICBC, it successfully formed financial centralized management in the city branches and the secondary branches in 2005. At the same time, in 2005, the implementation of SOX bill of China Mobile came into effect in the provincial and municipal branch. In a manner of speaking, China Mobile walks in the forefront of the majority of enterprises in financial risk management in china.This article takes the financial risk management of China mobile branches as the research object, focuses on the analysis of various present situation and the problems on financial risk management of China Mobile branches, carries out a detailed analysis of the present financial management form and its internal audit SOX of China Mobile branches, and put forward the reasonable suggestions on financial risk management of China Mobile branches.This paper is divided into seven parts:First, introduction. It is mainly a simple description on the research background, significance, method, frame, innovation and so on;Second, theoretical research. It is primarily a simple exposition on the theory of financial risk and provides relevant theoretical basis for the later writing;Third, current financial risk analysis of China mobile branches. It is mainly a analysis on the general situation of financial risk management, the major forms of financial risk management and SOX framework system of internal control;Fourth, problems existing in financial risk management of China mobile branches. It is mainly a discussion on the problems of financial centralized accounting management, SOX internal control, financial risk pre-warning;Fifth, based on the fourth chapter, focuses on the operation and design of the financial risk pre-warning to better support this article writing;Sixth, the recommendations to improve the financial risk management China mobile branches. It mainly expounds the accounting basic work, financial risk prevention, risk mechanism of construction, the strength of internal control and management, the establishment of financial risk pre-warning system and other aspects.Finally, conclusions and deficiencies. It is a summary of the article, and it proposes the shortcomings of the article and the view on how to make a progress in future work.