Research On Internal Control Of SHANDONG RG Co.,LTD

Internal control is the effective means for the guarantee company to realize the sustainable and healthy development.The internal control of the guarantee company must take the governance of management layers,control on guarantee businesses and risk prevention as the core while the researches on the internal control of the state-owned enterprises must rely on the nature of the state-owned enterprises and center on establishing the perfect internal control system.In recent years,the various financial fraud scandals in the global have been emerging in endlessly,wherein,one of the important reasons is the insufficiency or invalidity of the internal control of enterprises.Internal control has been paid more and more attention as the important component of company governance.Though there is always the consensus in the guarantee industry that the product of the guarantee company is the "risk" and the guarantee industry is a high-risk industry,implementing the scientific and institutionalized management is the law for the guarantee company to survive and develop,the guarantee company which takes "risk" as enemy still feels the crisis when the market economy is in depression.Certainly,it is undeniable that though the crisis intensifies the internal competition in the guarantee industry,it also reveals the potential risks and hidden dangers for some guarantee institutions,such as nonstandard operation and management,insufficiency of internal control mechanism and weak basis for industrial supervision,which gives strong warning role for the standard and healthy development of the guarantee industry.Under this background,many guarantee companies begin to seek for better operation and management ideas and methods thus to strengthen their own capability in risk management and crisis handling.Shandong RG Guarantee Company,the typical state-owned guarantee enterprise,grasped the chance of "comprehensive risk management and reform year" in 2015 and 2016,persisted in the risk idea of "giving priority to risk control,preciseness and carefulness,compliance and efficiency",comprehensively promoted the internal system construction and reform,and intensified the internal system construction.However,affected by the economic environment and concentrated outbreak of industrial risks,the fund sources for middle and small-sized enterprises are urgent,the risk projects emerge constantly,the business commutation risk is presenting a rising trend and the commutation projects are increasing.Therefore,doing the early warning and pre-judgment work well for risks,enhancing the internal control and management have become the first tasks for RG guarantee company.The research purpose is to find out the insufficiencies existed in the internal control of RG guarantee company,put forward corresponding optimization plans combined with the current situation of the company and the internal control theory thus to help the company improve the guarantee business quality and enhance the operation and management level as well as the risk prevention capability of the company,besides,offer some references and experience for the same industry.The paper,based on the analysis and organization on the development of the guarantee company and the basic theory for internal control,investigates the risk management situation of RG guarantee company and determines the key risk management module of the company.In addition,conduct evaluation on the current internal control situation of the risk management modules in accordance with the investigation result,adopt the means of the risk coordinate graph,screen and rank the major risks from the two perspectives of risk possibility level and influence degree level of risks,and then know the internal control modules existing with major risks for risk evaluation.Currently,the current internal control situation of RG company is to lay emphasis on sorting the external environments of the company but neglect the restriction of internal links and positions;besides,it lays emphasis on the procedure control of the operation link but neglect the overall coordination of the company;the insufficiencies existed in the internal control system of RG guarantee company include non-matching of the internal institution establishment and corresponding rights and responsibilities,uneven work quality of the guarantee businesses,imperfect construction work of the internal auditing system as well as the non-adaptation of the strategic planning and business development guidance mechanism.Therefore,RG guarantee company should rely on the current situation to improve the internal control system from the aspects of organizational structure,guarantee business work,internal auditing and strategic development situation.The paper conducts deep investigation and research on the internal control situation of RG guarantee company,and the research result plays the practical significance on promoting RG guarantee company to perfect the practical,scientific and reasonable internal control system.