The Internal Control Problems And Countermeasures Of Guoyuan Security Company

As the gradual improvement of the market, the risk which the security companies face is diverse. Therefore, strengthening internal control and supervising the security companies is especially important for sustainable business development. Guoyuan Security Company has developed for a decade, and has taken strides positively in this decade, wonning lots of honorary titles, such as "The most growing security broker of China"and so on. But It also appear some problems, such as the uncoordinated development rapid between the management of the various departments in company and the development pace. Internal control is the lifeline of Guoyuan Security Company, which is the first line of risk prevention, representing the top priority work of the Guoyuan Security Company.Main research objectives are:Firstly, exploring Guoyuan Security Company embodied in the main business risk is to find out the rationality of the management and internal control; Secondly, by calculating the VaR, the overall risk of Guoyuan Security Company is controllable or not, and the comprehensive internal control is reasonable or not; Thirdly, strengthening Guoyuan Security Company’s internal control is beneficial to the entire stock market’s stability, sequence, rapid development.Through extensively collecting materials, reading numerous literatures concerned, applying the method combining both standard research and empirical study, It deems the four main businesses of Guoyuan Security Company and VaR risk measure depthly. The data of the Brokerage Business, Proprietary Trading Business, Investment Banking Business and Asset Management Business of operating income is from the regular disclosed information of Guoyuan Security Company’s annual report and semi-annual report; The data of calculating the VaR of Guoyuan Security Company is from the daily closing price of Shanghai Composite Index and Guoyuan Securities from the January4th,2010to July12th,2012, than do respectively normality test.This article mainly analysis Guoyuan Security Company’s internal control situation from both micro and macro background, and got the conclusions as below:Firstly, the investment banking business and asset management business of Guoyuan Security Company have a relatively small impact from the equity market, so we can conclude that the revenue decrease of Guoyuan Security Company mainly caused by decline of brokerage business income; Secondly, the main risk of Guoyuan Security Company is the market risk, business risk and management risk; Thirdly, the risks that Guoyuan Security Company facing at this stage are belongs to the normal range, we should generalize internal control mechanism, using more reasonable system, and implement the supervision and management strictly according with the China securities supervision and management committee for internal control requirement.According to the present internal control situation of Guoyuan Security Company, this paper’s suggestions are as follows:Firstly, strengthen the management of human resource, establish the scientific salary system, and formulate flexible training plan; Secondly, strengthen cooperation between departments, improve the company’s internal management, enhance the communication; Thirdly, implement the budget management more comprehensive, and found a strict budget assessment system; Fourth, strengthen internal supervision, regulate the audit committee’s responsibilities, and make full use of the site audit mothod.