Construction of Control System of Enterprise Group Financial Risk

Abstract: With the accelerating Economic globalization, enterprises are faced with more complex external environment, the risk of experiencing various types of tests. Companies need to raise awareness, strengthen leadership, strengthen the daily management, good risk early warning and emergency treatment, in establish a sound internal Financial Risk control system to ensure the safety chain, enterprise funds, the cash flow to respond to crises, and promote stable and healthy development of enterprises.

Keywords:: Financial Risk; early warning prevention and control; emergency

Periodic global financial crisis and the restructuring of the domestic enterprises are facing more severe Economic situation, encountering unprecedented challenges. Faced with ever more complex Economic situation, prevent and defuse Financial Risks better disposal of business, chain security to ensure a good cash flow of funds through , has the primary task facing the enterprise. The enterprise group unit by members of the many industries large span, long chain, management, multi-level, you need to build a better system of effective prevention and control Financial Risk prevention and control of Financial Risks.

According to the characteristics of enterprise groups, the actual work, the enterprise can focus on the following areas to begin building financial risk control system:
First, enhance awareness of financial risk control
With the acceleration of Economic globalization, business and gradually expand the scope and scale, is facing increasing competition, increasing the risk factors faced by the macroEconomic situation is more volatile, increase awareness of financial risk control, strengthening financial risk control requirements are more urgent.

Financial risk control can be identified by the internal control problems and defects, and promote enterprises to improve the internal control system to realize scientific decision-making, scientific management, a complete decision-making mechanism, a good incentive and restraint mechanisms to improve the risk sensitivity and do to the timely analysis, accurate assessment and effective control of the company's financial risk.

Through the financial risk control can be set up to promote enterprise awareness of the cash first, the correct analysis, scientific deal with complex economic situation, optimizing capital structure, maintain capital and liquidity. Through the financial risk control, and promote enterprises to increase income, savings and consumption reduction, compression, financial receivables funds used money and inventory, and other unproductive spending to protect the smooth circulation of cash, the enterprise healthy and sustainable development.

Financial risk control through the establishment of financial risk early warning mechanism, to detect signs of financial risk, risk management to take timely measures to prevent and recover losses caused by financial risk and ensure business goals and the orderly and efficient operations.

Second, to strengthen organization and leadership of financial risk control
Corporate financial risk control should be set up working group to organize the financial risk prevention, early warning and disposal. Financial Risk Control working Group by the company led by the chief accountant or financial director, the responsibility of department heads to attend. Financial Risk Control Panel should be work the following four principles:
(A) of the unified leadership and graded responsibility. Group enterprises shall be fully responsible for the parent organization of financial risk control, coordination and leadership. The jurisdiction of their respective levels of responsibility within the company's financial risk control.

(B) early warning and timely disposal. On the financial risk should be done early discovery, early reporting, and to take decisive measures to control and resolve in a timely manner to prevent the risk of spread and spread.

(C) carry out their duties, solidarity and cooperation. Business departments in accordance with the division of responsibilities, actively planning the implementation of the prevention, resolve and dispose of financial risk measures for mutual coordination and jointly prevent, resolve and dispose of risk.

(D) of chemical combination, focusing on prevention. To strengthen the monitoring of financial risk, financial risk and urge enterprises to responsible departments at all levels to provide timely information to make timely and effective monitoring to improve the response to all kinds of unexpected risks.

Third, strengthen the control of the daily management of financial risk
(A) strengthen the cash management
Standardized reporting and capital budget approval process network, payment approval and funding to strengthen centralized management of enterprise funds to ensure the healthy functioning chain security and to achieve.

(B) to enhance overall budget management
Adhere to all business activities controlled by the budget management, and expand the scope of budgetary control, and improve the budget early warning mechanism, regulate the behavior of budget adjustments, and improve budget management tools, and strengthen the budget process control, will be allowed any extra expenses.

(C) strengthening the management of two gold occupation
In addition to normal rolling settlement of the long-term strategy for the user, other users are not allowed to sell on credit. Non-organized production to ensure that, in order to ensure that the sales were on credit, the credit quality of the customer to evaluate and establish credit files, classification management. Dynamically adjust the customer's credit rating. In business departments in charge of coordination with the judiciary to carry out legal debts with the work, take the initiative to adopt property preservation and enforcement work. good inventory management, analysis of stock structure, to distinguish between normal and abnormal reserve reserve. to implement the principle of market-determined production, to market ability, avoid the product backlog; strict liability defective product liability held. reposted elsewhere in the Research Papers Download http://www.hi138.com (d) strict cost control
Cost of full implementation of quota management, and actively use information technology to strengthen cost control measures to manage the total consumption handle, do the main product cost control.

Fourth, good control of the early warning of financial risks
Financial risk early warning system is an important part of controlling financial risk, financial risk control system determines the quality of the operation. Companies owned company guidance should focus on monitoring, periodic reports. Through the formation of financial risk analysis, qualitative and quantitative analysis of early warning early warning the method of combining analysis, the establishment of effective early warning mechanism to prevent financial risks, so early detection, early start, early treatment.

(A) guidance, focusing on monitoring, periodic reports
Profit and loss and cash flow under the circumstances, the Group owned enterprises can be divided into general risks of the company units, the larger the risk units, a significant risk units, large units of four types of risk for financial risk control.

Financial risk through early warning systems for large enterprises, major and serious risk units to focus on monitoring. For larger risk of financial risk-taking unit monthly reporting system, significant and serious risks for the financial risks taken by units weekly reporting system.

(B) the collection and dissemination of early warning information
Enterprise information systems should be based on information collection and delivery platform for financial risk warning to grasp the various types of information needed, sources of information should be open. Early warning information system includes not only the early warning data collection, but also include the collection of data processing, analysis to determine and prevention, diagnosis Company disposal measures and other information of potential financial risk and timely elimination of the financial crisis, expert consulting system. for the collection, processing, analysis and sorting of data and measures proposed after the other information in a timely manner by summary and reporting enterprise-level financial risk control group. on the matter should be one level of approval for reporting and approval.

(C) the establishment of qualitative and quantitative indicators for early warning system
Corporate financial risk early warning system should be qualitative indicators include: net cash flows from operating activities negative, the main financial indicators show that the deteriorating financial position and some quantitative indicators of financial risk early warning early warning monitoring. Quantitative early warning key indicators include: limited quick ratio, interest earned ratio, asset-liability ratio and so on. All units can be combined with units of practical, appropriate increase in a number of quantitative early warning indicators, improved early warning quality.

Enterprises according to their own reality, according to the national industry standard for segmentation and quantification of the indicators in order to meet the quality requirements of the financial risk early warning, early warning to ensure the accuracy of financial risk.

(D) Early warning analysis
Early warning analysis of analysts quickly ruled out first by warning of a small financial risk, the analysts focus on the potential to cause significant impact of the financial risks. A focused analysis of the causes of the financial risks, assess their potential losses. causes of the financial risk, the formulation of targeted measures should be disposed of financial risk.

Early warning indicators of financial risk is one major exception, the enterprise financial risk should emergency treatment immediately.

Fifth, the emergency control of financial risks
Emergency treatment in the process of financial risk. Should be combined with business practice, worked out to prevent the expansion of financial risk, targeted emergency measures, including delay or reduce payments, accelerate loan recovery, expanding trade association, the implementation of asset restructuring, debt restructuring , seeking new investments, sale and leaseback of assets, the economic situation and market projections, business unit respond to some serious risks related purposes, stop, and, turn. can not be shut down production at the most economical arrangement is conducive to increased production and other cash inflows and reduce the cash outflow measures.

VI emergency financial risk of self-improvement
Emergency treatment of financial risk to establish a self-improvement features. Through the system, detailed record of financial risk the causes, consequences, treatment through, resolve and dispose of risk measures, and handling feedback and suggestions for improvement, to revise and improve the emergency treatment to significant financial risk prepared to deal with similar issues for reference.

In the crisis, the mandate of corporate control financial risks, both difficult and critical. Hundreds of financial risk through the effective control and timely warning to find laws, find solutions to plan carefully, the risks into opportunities, challenges into opportunities, to ensure a smooth business transition over the crisis, enterprise security, health, harmonious, orderly and rapid development.


References
1, "<Group Financial risk management"> Zhang Jide Economic Science Press, 2008 edition
2, "" Enterprise Budget Management Theory and Case>> Ministry of Finance, Economic Science Press, enterprises Edition Links 2007 Research Papers Download http://www.hi138.com