Research On Financial Risk Management Of S Company Based On COSO Risk Management Framework

As the main body of China's private economy,SMEs,as the most dynamic construction force in China's economic development,play an important role in promoting economic development,expanding employment,improving people's livehood and achieving social stability.However,there is a problem of short life expectancy in the development of SMEs in China.Some studies have pointed out that one of the main reasons is that the financial risk management mechanism of enterprises does not match their operation and development needs.Thus it can be seen that good financial risk management is of great significance to the survival and development of enterprises.How to get the theoretical framework for China's SMEs risk management,a more scientific theory to enhance the level of its financial risk management,give full play to the financial risk management in risk prevention,strengthen the role of internal control and to create value,to achieve long-term stable development,is a realistic problem urgently to be solved in China's SMEs.At present,China does not have a truly mature risk management system for private enterprises,so this paper takes a foreign risk management theory as the theoretical basis for the research.From the risk management theory development and foreign current main risk management theory,the COSO-ERM2017 is a relatively scientific and comprehensive integrated system and analysis tools in nissin with different operating environment and the fierce market competition,the theory analysis and perspective and analysis of comprehensive business outstanding functions such as motivation,enterprises financial risk managementin the world has a pivotal position,to combine the domestic current situation of the enterprise management study reference.This paper takes S company,a medium-sized manufacturing enterprise,as the case study object.Firstly,major financial data of the company from 2015-2017 were selected and the corresponding financial indicators were calculated.Quantitative analysis and qualitative analysis were combined with articles of association and annual reports to identify and summarize the financial risk management of S company.Secondly,based on the theoretical framework of COSO-ERM2017,I pointed out the problems in its constructions of its own financial risk management system.Thirdly,a set of financial risk management system suitable for S company is optimized according to the problems,and the expected application effect of the system is analyzed.At last,draw a conclusion and enlightenment.This paper is divided into five parts.The first part is the introduction,introducing the research background and significance,literature review at home and abroad,research ideas and methods,research innovation and deficiencies.The second part is an overview of relevant theories of enterprise risk management,mainly introducing the differences between foreign and domestic risk management theories represented by the COSO risk management framework.The third part mainly analyzes the current situation and problems,including the general situation of S company,the current situation of financial risk management,and the problems existing in the construction of financial risk management system.The forth part presents the optimization scheme of financial risk management system in line with the actual situation of S company.The fifth part summarizes the research results of this paper and looks forward to the development trend of enterprise risk management in the future.Through the study on S company in-depth analysis,based on the COSO-RRM2017 theory framework,optimizing the financial risk management system for S company,to improve its financial risk management level,improve the purpose of financial risk management status,further,to realize the companystrategic guidance to enhance more standardized,more to strengthen internal control,corporate behavior and concept to adapt to the trend of The Times expected effect.