Research On Risk Management Of Financial Shared Service Model Of Q Group

With the rapid development of globalization trend,large and medium-sized corporations have been attempting to build branches and subsidiaries with the aim of large-scale development.However,a number of similar financial business have not been integrated appropriately from different branches,by doing this,there is large number of accountants will be required and deployed.It will result in increasing cost and inefficiency within the organization,and the issue of financial execution not match with expectation has been becoming more seriously.In the process of integrating information technology,such as big data and cloud computing with accounting disciplines,the financial shared service has been adopted gradually.This model has greatly promoted traditional accounting with its low-cost and high-efficiency financial accounting and management services.However,the financial shared service not only centralizes the accounting work from different branches,but leads to certain risks.How to address the risks under the financial shared service is becoming an issue which required more attention.By combed the financial shared service and related risk prevention literature,this essay will take Q Group as a research object.It will be introducing the present situation of its implementation of the financial shared service and analyzes the existing problems.By applying the documentary analysis method and combines on-site visits,the risk of financial-shared service from Q Group is identified.Moreover,analytic hierarchy process is applied to confirm the risk weightiness,and activity based classification is adopted to divide the risks into important levels.There are five types of risks from Q Group’s financial shared service from the research,namely organizational personnel risk,business process risk,information system risk,operational management risk,and legal and regulatory risk.The level A risk includes subsidiaries regulatory,data discrepancy,tax planning,budget controlling,lack of business process supervision and inventory control.It is the critical target for risk management in the financial shared service.Under the circumstance of financial shared service,Q Group should pay more attention to the management and control of unlisted subordinate,set up standardized data,conduct targeted tax planning as per tax policies,optimize capital budget management,strictly control budget,improve and monitor business informational transparency and improve inventory management.This research will benefit Q Group executing risk management when implementing the financial shared service.Also,the organization is able to ensure a healthy development of the financial shared service.By doing this,it eventually can be served as a reference for other companies to carry out financial shared service.