Research On Enterprise Financial Risk Management Based On Internal Control

With the rapid development of China’s economy in recent years,as a financial organization within the group,finance companies have become an area actively explored by many companies for group management and to improve the core competitiveness of the group.In order to comply with the development trend of financial market reform and economic diversification and accelerate the development of enterprise groups,finance companies were born,which adapt to the inherent requirements of enterprises and also play an increasingly important role in the healthy operation of China’s financial system.In recent years,the regulatory authorities have also strengthened the supervision of finance companies,and to cope with the strict supervision of higher authorities and the increasingly severe market conditions,finance companies also continue to draw on and introduce advanced internal control methods,but due to internal control failures and other reasons,making financial risks still occur from time to time.As a small and medium-sized financial organization,there are few studies on financial risk control of finance companies,most of which are on financial risk management of banks and other financial institutions,and there are few articles on financial risk analysis of finance companies under the perspective of internal control.In order for the company and the group to develop healthily and steadily,C Finance Company now urgently needs to optimize the original financial risk control system to get a perfect and effective financial risk control system.Therefore,this thesis takes C finance company as a case study,based on the existing literature,combined with relevant basic theories,using the case study method,combined with the camel evaluation system to analyze the financial risk of C finance company from five dimensions:capital adequacy,asset quality,management,earnings,liquidity,through the specific data analysis of capital adequacy ratio,non-performing loan ratio,asset return rate,etc.The current situation of financial risk prevention and control of C finance company was identified.Through the distribution of questionnaires,we analyzed in-depth the causes of the existing financial risks of C finance company from the perspective of internal control,and the study found that C finance company has certain financial risk potential due to the poor internal control environment,the internal control measures do,the lack of evaluation ability,the lack of timely information and communication feedback,and the failure of internal supervision.After fully analyzing the sources of financial risks using the HHM model,we proceeded to build a framework for the financial risk control system of C Finance Company and proposed specific implementation measures by combining the five elements of internal control.The thesis is innovative in terms of research perspective and case selection.Firstly,this thesis mainly studies the financial risk control of finance companies under the current situation based on internal control theory.Secondly,this thesis takes C finance company as a case,which helps to improve the theoretical system of risk prevention and control of finance company,and expands the theory of financial risk prevention and control of finance company to a certain extent,hoping to provide some reference and help for the financial risk control of C finance company and similar enterprises,improve the level of financial risk prevention and control of finance company,and improve the financial risk prevention and control system.