Research On The Improvement Of CIMC's Internal Control Based On The COSO-ERM Framework

In 2016,the growth of China's economy continued to slow under the "new normal" as well as the traditional manufacturing industries remained downward status.In the severe economic situation both at home and abroad,CIMC group's major business sectors were affected by different degree,The risk of slow growth of CIMC group's main business is holding.Its full-year revenue and earnings decline year-on-year.Because of CIMC group's business sector,asset scale,subsidiary of wide distribution,market share,in the face of the complex market environment and powerful competitors,enhance the level of CIMC group's internal control is a problem to be solved.It asks CIMC to face the facts,under the COSO-ERM framework,the internal control level is constantly improved to achieve strategic upgrading and business transformation,ensure operation compliance and risk control,and maintain smooth operation of production and operation.Along with the increasing external compliance requirements and transformation and upgrading of CIMC group development needs,the internal risk control system and the corresponding system needs to be adjusted in a new situation in a timely manner,so as to further improve corporate governance according to regulation in accordance with the law.Based on CIMC group 's internal control system upgrade pilot work,we think we can take action based on the COSO ERM framework to enhance the level of internal control,strengthening the overall situation,the trend for the medium and long term risk analysis,risk control work focused on enterprise development strategy,artificial and submit for review risk control system,perfect the risk issues research assessment procedure,set up and risk monitoring and early warning mechanism for emergency or centralized processing mechanism to explore the major risk events,gradually establish and improve the risk management system.From the theoretical base of COSO ERM,risk management,internal control,after combing the CIMC group's business from all over the world to identify existed risks,emphatically analyzes the key control points of all kinds of risks.Based on COSO ERM framework,CIMC group is put forward from the internal environment,risk identification,control activities,information communication and internal supervision to enhance the level of internal control in five aspects,which can provide reference for diversified enterprise regarding internal control construction.