The Financial Risk Evaluation And Countermeasures Of X College Based On Coso Internal Control Framework

In 2012,the Ministry of Finance and the Ministry of Education jointly promulgated the Financial Rules for Institutions of higher education,which regulated the financial behavior of high schools and provided policy guidance.However,due to lack of funds,unclear authority and responsibility,oversight of school management,inadequate supervision mechanism and unsound risk assessment,there are some financial risks in colleges of China.Different from general enterprises,as a talent-intensive organization,the projects or infrastructure investment of colleges are very different.It is not realistic to control the financial risks of colleges based on the standards of enterprise.Combining with the construction of internal control system is very necessary.To control financial risk,first we must understand what the risk of colleges,which risk is the most important one,which risk is secondary,thus,involving the financial risk assessment of colleges is very important.At present,the current financial risk evaluation method focuses on the financial risk of enterprises,because the colleges itself is a non-profit organization,we cannot copy the enterprise financial risk indicators to assess the level of financial risk of colleges,so internal control become a reasonable choice to manage the financial risk of colleges.This study takes X College as an example,giving a comprehensive and systematic analysis of the major risks that the college facing.First,we analyze the macro environment and find several risk factors per the environment.Second,we take advantage of accounting information,using the accounting information to understand the history financial information of X college.Third,we used the AHP method to compute the magnitude of these risks weights scientifically.Forth,we used the method of Gray-Fuzzy Evaluation to calculate the total financial risk of X college.Last,we provide some suggestions and coping strategies.The results indicate that(1)College X faces low-middle level financial risk.(2)The internal control system cannot make sense in college X and lagging of risk administration.(3)The weight of different risk is totally different;people should put different resources to different risk based on the risk weight.(4)The evaluation system of this study can provide a useful choice to evaluate the risk,which can dynamic adjustment and provide reference to other schools.