The Research On Financial Risk Controlabout Chain Of Retail Enterprises Based On Internal Control

Since chain operations mode entering into China, it become a fashion mode whichlarge company want to imitated for accessing to rapid development thanks to its scale,unified, efficient. In recent years, the chain industry's market share has become the fastestgrowing retail ranks and more than the department store industry, it becomes the mostadvanced mode. From the second half of2011China's chain retail enterprises experienceda blowout early development, it also suffered a cold current, its financial performancestagnated and suffered serious losses. At present, China is facing many challenges fromthe retail chain buyers' market, global economic integration, the knowledge economy, andmany other factors. Then how to avoid financial risks through effective financial planningand capital operation is a inevitable problem. In-depth development of the marketeconomy, an increasingly competitive today, how to make chain retail enterprise'sfinancial risk reduction is one of the key factors which has restricted the development andgrowth of retail chains.This article based on in-understanding of the retail chain characteristics, combinedwith the current economic environment and internal control from the COSO framework ofthe commission's to analysis a financial risk control system suitable for the developmentof China's chain retail enterprise. Financial risks uniqueness as an entry point with theframework of the internal control system analysis chain retail enterprise internal controlobjectives, control objects and control program content. It can through the five elements ofinternal control flow—internal control environment, risk assessment, control activities,information and communication, control supervision specific analysis to financial riskidentify and prevention control, and give suggestions to help HYJD retail chain enterprisefinancial risk control.