Research On How To Improve Transmission And Distribution Enterprises Internal Control Based On Risk Management

Recent years have seen the market-oriented reforms in the power enterprises, and transmission and distribution enterprises have been placed as a key sector in this reform. Such enterprises are facing the uncertain risk of being deprived from the State Grid all along with their own risks of being an enterprise. Although transmission and distribution enterprises are still part of the State Grid for the moment, they are now facing a fully competitive market. Time is different. New situations urge these enterprises improving their own competence by optimizing their internal control. For now, in the perspective of their status of constructing internal control systems, these enterprises still have a set of deficiencies, which make them inadapt to new situations. Thus this thesis is aimed to propose relative solutions to this problem based on eight factors within CO SO frame.In this thesis, the writer reviewed several related documents and analyses, and put the characters and risks that transmission and distribution enterprise may have into consideration, to make an optimizing solution for A company in four of eight COSO frame factors. In case study, the writer took measures like field survey and questionnaire to analyze its status, problems and risks of A company’s internal control from the listed four dimensions; and in addition to optimize its internal control system.The thesis is consisted of seven parts:Part one:introduce the background, and raise the purpose of this study, and set the method and idea of the study, main frame of this paper and its expected contribution.Part two:make a literature review based on four topics of traditional internal control factors, risk management, relationship between internal control and risk management, and internal and risk management.Part three:expound the meaning and development of internal control, the writer emphases the eight factors of internal control. And expounded the character of transmission and distribution enterprises and the risk they face, and then concluded four factors to analyze.Part four:take example of A company as a case to study. The writer surveyed the status and the establishment of its internal control in four dimensions of goal setting, internal environmental governance, risk response and control and supervision. And then the writer makes a further analysis of its internal control construction status by questionnaire and interviews.Part five:actual analysis of A company’s problems in four dimensions from the actual situation and the problems the writer discovered in interview and questionnaire.Part six:based on the case analysis, the writer makes suggestions of how to optimize its internal control on the level of those four factors.Part seven:conclusion and deficiencies of this paper.The contribution of this thesis is taking A company as an example to state its present internal control system and its implementation via field survey and interview. Then, the writer took a questionnaire to uncover the deficiency of its internal control and the risks it confronted with. And then the writer proposed risk-management-focused optimizing suggestions based four listed factors from the eight factors of internal control theory, expecting to be of use for tens of similar enterprises nation-wide in adaptation to new market situations.