The Research On Risk Control Of Cost Budget Execution In Jilin Oilfield Company

As China’s economic slowdown, state-owned oil and gascompanies facing international competition, national policy reform andadjustment, mineable resource constraints, and many other challenges.The cost of inputs and yield requirements has become increasinglyprominent. The recent study of IPA shows that in large-scale oil and gascompany,22%exploration and production progress behind schedule, butthe average budget overruns has reached25%. This situation puts forwardhigher requirements. In order to make budget management supportcorporate strategy development, establishing a scientific and effectivebudget management and control mechanisms is urgent needed. Butanalysis from the current domestic and international status of the budgetmanagement theory, the risk control on the budget implementationprocess control theory is imperfect and not specific. This article attemptsresearch the identification, assessment, monitoring, treatment and otheraspects of the budget implementation. And improve budget executioncontrol theory, and apply these theories to solve the unclearlyresponsibilities defined in budget execution, weak budget executiontracking supervision, budget implementation and the lack of earlywarning feedback mechanism, unscientific evaluation and adjustment inbudget execution and other issues in Jilin Oilfield Company.We choose Jilin Oilfield Company as oil and gas enterprises budgetexecution and risk control object of study. Through the budgetmanagement and risk control theory expounded, in conjunction with thecompany’s actual situation, first of all, we study particularity of theresources exploitation investigation, budget management organizations,mechanisms and corporate culture, management and implementation ofthe current budget situation, etc., and put forward the research background. Secondly, from the budget execution process of riskidentification and early warning, error feedback and control, budgetexecution adjustment,the implementation of a full range of riskresponsibility, the introduction of budget management informationsystems and other aspects of risk prevention and control system buildbudget execution, measures to solve practical problems. Finally, from asound institutional system, refine organizational structure, improve thequality of personnel, build corporate culture and other aspects proposedthe establishment of risk prevention and control system of safeguards.The findings obtained are: budget execution is the enterprise to ensurestrategic goal. An important means to avoid risks to the budgetimplementation process of risk control as a starting point. We need to putthe company’s risk management and control theory into the budgetexecution control study to solve the problems of the company ’s response,focus the work on risk identification, risk control, risk response, etc.,propose the establishment of a comprehensive budget execution riskprevention and control system of theoretical perspectives. By studying theimplementation of the budget of Jilin Oilfield Company and risk controltheory, in order to apply to actual production, solve business problems,and ultimately improve the company’s budget execution results, guardagainst operational risks, protect the purpose to achieve strategicobjectives.