| Recently, construction industry, with growing expansion, has taken a vital position inthe economic construction of our country. With lots of events, such as joining WTO in2001, hosting Olympic Games at2008, etc., have happened, construction industry isspeeding up its global process. All the facts such as the building of cultural and sportsvenues, the constructing of large-scale infrastructure, the developing of real estate projectand lots of international program reflect that construction industry is one of the importantpart of the development of national economy.With the development of society, the projects that construction enterprise has takenare becoming technological, information&law-based and integrated. In recent years, therisk that construction industry is facing is up, at the same time that the competition withinconstruction industry is growing more and more fiercely and the scale of the industry isbecome larger than ever. From the beginning of the bidding to the completing of the wholeproject, the risk that the construction enterprises face is hidden all over the process such ascontract management, general contracting and subcontracting, progressing of the project,quality and safety, etc.. It will bring huge economic loss and legal responsibility to theseenterprises if risks are not taken control effectively. As matter of fact, bad risk awarenessand weak internal control have always been the direct causes of safety and qualityaccidents. As high risky as it is, the construction enterprise need to take lots of methods toimprove its internal control and risk management.This article has consulted some research related to internal control and riskmanagement both in China and abroad. It uses normative study method to combine theoryanalysis and case study together, taking into account the identification and valuation therisk and the handling methods, to discuss major procedures in risk management andinternal control.Firstly, chapter one, the introduction part, introduce the background, the purpose andthe significance of this article as well as the theory, the method and the advantages and thedisadvantages of this article, etc.. Secondly, chapter two has discussed the basic definitionand the distinguishing features of construction industry and its projects, and the certainconnection between internal control and risk management. Thirdly, this article selects threeimportant procedures, contraction management, risk management of general contract andsubcontract, and the control of progression of project, to discuss the hidden problems andthe contributing factors of internal control and risk management. To be specific, chapterthree, chapter four and chapter five are going to analyze the hidden risk and key procedure to find out risk prevention policies. Finally, taking the example of Saudi Arabia Meccaproject of China Railway Construction Corporation, this article analyzes the importantprocedures of risk management to emphasize the necessity of internal control in the highrisk parts of construction industry.Most of the research in China has mainly based on theory study. However, fewresearches have taken further attention to the strategic management and day-to-dayoperation. Also, there is much less study focused on construction industry and its internalcontrol and risk management.This article has based on theory of “Frame of Enterprise Internal Control”,“Frame ofEnterprise Risk Management”,“Standard of Enterprise Internal Control”“The SupportingGuidelines for Enterprise Internal Control” and strengthen risk management and control toensure the quality of the project-the Ministry of finance accounting interpretation of“No.11of Enterprise Internal Control Guide-Engineering Project” etc. It also focuses onthe three important procedures: contraction management, risk management of generalcontracting and subcontracting, and control of the progression of project. Also, this articleattempts to hold the key point of risk control and to suggest efficient methods of internalcontrol and risk management. |
PDF Full Text Request