| Due to the special nature of the development of the insurance industry,the risks faced by the insurance industry are relatively diversified.Insurance enterprises should not only bear the risks of the insured,but also prevent and resolve the risks faced by themselves.Therefore,the risk prevention measures of insurance companies are studied.It is very critical to the healthy development of insurance enterprises,stable business and market development.COSO Committee released a new version of the COSO-ERM framework in 2017.The new version of the framework attaches more importance to the integrity and strategy of enterprise risk control,and further expands the scope and level of enterprise risk control.The enterprise risk prevention and control under the new framework has become an indispensable part of the company’s business strategy.Based on the COSO-ERM(2017)framework released by COSO Committee,this paper analyzes the current situation of financial risk management of New China Insurance Company.This paper is based on the theory of financial risk,according to the analysis and evaluation of the company’s financial ability index,and finally the comprehensive risk system control logic.The first is the identification of financial risks.It first introduces Xinhua Insurance Company and analyzes its main business and main financial indicators in the past five years,and then decomposes the total asset growth rate,asset-liability ratio,net interest rate on sales,debt repayment and profitability related indicators.Secondly,it makes specific research and discussion on the financing risk,profit risk,operating risk and profit distribution risk of Xinhua Insurance Company.It also found out the diversified risks faced by Xinhua Insurance Company combined with the company’s financial risk management status,and finally proposed the corresponding control measures for the risks faced by Xinhua Insurance Company according to the five elements of COSO-ERM(2017)framework.The research of this paper concludes the following countermeasures and suggestions:At the level of strategy and objective,it is necessary to optimize the strategic evaluation of risk prevention and strengthen the target orientation of risk prevention;at the level of governance and culture,it is necessary to strengthen the construction of risk management culture,improve corporate governance and organizational structure as well as improve the comprehensive quality of employees;at the level of performance,it is necessary to optimize the debt capital structure,expand diversified financing channels and strengthen the ability of reasonable allocation of funds.At the level of review and amendment,we should improve the performance evaluation mechanism and establish a more scientific investment risk measurement system.At the level of information communication and report,we should optimize the information and communication system of Xinhua Insurance Company and strengthen the internal supervision mechanism.This paper combines financial risk management with the COSO-ERM internal control framework to provide a certain theoretical research basis for the subsequent improvement of the risk management system.At the same time,it provides new ideas for the financial risk management of other insurance companies to improve the stability of the company’s operation and stimulate the company’s development potential. |
