A Research On Risk Management And Internal Reporting Based On Business Process Perspective

With the rapid development of economic globalization, companies are facing more fierce market competition and increasingly complex environment; thereby risk management has become a new topic of corporate accounting. To avoid the risk management has become castles in the air, the paper makes risk management reflected in the internal reporting of the enterprise based on business processes, which will make corporate risk control point integrated into process to avoid the risk being detached and empty, prompting companies carry out effective business management and decision-making in a rapidly changing marketplace. So how to make risk control and internal reporting integrate into the process of enterprise and how to make the enterprise risk management and control processes reflected in the company’s internal reporting system become the main line of this paper.This paper is to use case study method. Based on analyzing the internal processes and the actual situation of the company-Xiamen Grain Purchase and Sale Co., Ltd, Ⅰ tease out the process issues and potential risks existing in the case company, and Ⅰ construct the corresponding risk management and internal reporting system against problematic processes. Simultaneously, Ⅰ discuss the integration of risk management and internal reporting in detail, and Ⅰ analyze the necessity of the integration between the risks management and control and internal reporting. Then Ⅰ propose five conditions about the integration between the risks management and control and internal reporting, so that the risk management and internal reporting can be integrated in the process of enterprise and play the greatest role.Through the case studies on actual process management of the case company, Ⅰ diagnose the process problems and potential risks to avoid the research of the process and risks staying in theory. It is help to promote the company’s practical application on the actual business processes. According to the process problems and risks of the case company, the paper designs the risk management and internal reporting system based on the business process and constructs organizational structure reporting, responsibility unit reporting, financial management reporting and security management reporting, which is the improvement for the current internal reporting system. Finally, this paper presents the necessity and five conditions of the integration on risk management and internal reporting which lay the foundation for risk management and internal reporting integrated in the enterprise process.