Title: Internal control system of enterprise financial risk under the condition of diversified operation

Authors: Yuehong Weng; Yang Li; Weifang Chen

Addresses: Changchun Sci-Tech University, Changchun, 130000, China ' Vocational and Technical College, Changchun Sci-Tech University, Changchun, 130000, China ' Department of Public Basic Courses, Hunan Polytechnic of Environment and Biology, Hengyang, 421005, China

Abstract: Under the conditions of diversified operation, enterprises face more complex and diversified financial risks. Therefore, it is proposed to conduct research on the internal control system of corporate financial risks under diversified business conditions. Diversified management includes the characteristics of product diversification, geographical diversification, channel diversification, brand diversification, and technological diversification. The financial risks of enterprises under diversified business conditions mainly include capital flow risk, debt risk, operational risk, foreign exchange risk, and market risk. To address the existing financial risks, establish an internal control system for corporate financial risks from multiple perspectives. The results indicate that the financial risk internal control system studied can classify the financial risk levels of enterprises based on market risk, credit risk, and liquidity risk; establishing a comprehensive internal financial risk control system has improved the effectiveness of financial risk internal control.

Keywords: diversified operations; corporate financial risks; internal control system; debt risk.

DOI: 10.1504/IJSD.2024.136613

International Journal of Sustainable Development, 2024 Vol.27 No.1/2, pp.16 - 29

Received: 26 May 2023
Accepted: 30 Aug 2023
Published online: 08 Feb 2024 *

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