Shanshan Shares Built Up Internal Control System In 3 Years To Achieve Self Immunity

"The 11 meeting of the leading group of internal control has been cancelled in September 11th. The next meeting of the leading group of internal control will be held at 1 p.m. on September 18th."

Shen Lvyan, the Minister of internal control, received this notice at noon on September 10th.

"Because the company leaders went to Japan for business, the meeting was postponed, but it would never be pushed too long."

Shen Lvyan said that since the first meeting of leading group of internal control was held in April 15, 2009, the weekly meeting has never been interrupted.

In the past 3 years, the internal control department has compiled two thick books, which clearly recorded 11 times in 2009 and 40 in 2010.

This is just a profile of Shanshan Group's internal control construction in the past 3 years.

Built up internal control system in 3 years to achieve self immunity

"Popularly speaking, internal control is a self immune system of enterprises, reflecting the ability of enterprises to self examine and repair", Shen Yan Yan described with reporters.

Shanshan shares began to comprehensively promote internal control in 2009. After more than 3 years of exploration and construction, it has formed 5 high-risk core business areas covering procurement, sales, credit, finance and investment management, involving 19 business areas, including corporate governance and organizational structure, strategic and planning management, corporate culture and public relations, investment and financing management, and a total of 14263 risk control matters.

For this complicated internal control system, Shen Lvyan drew an analogy: "the internal control work is to face a fast highway which is obstructed without any obstruction but often causes traffic accidents. In a proper place, adding a sidewalk and a vertical traffic light, the running speed of a single operation seems slow, but the actual overall operation risk has been controlled to ensure the efficiency and stability of the overall operation of the enterprise."

At the same time, the industrial companies affiliated to Shanshan Group have to conduct a comprehensive inspection of the five high-risk businesses in accordance with the system every month. They also conduct a comprehensive inspection of other businesses every quarter, and evaluate the internal control work by the internal control department one year, and the evaluation score directly affects the annual performance appraisal of the management team.

In addition, the internal control department has recruited a group of Commissioners. After conducting corresponding training and on-the-job training, the internal control company was sent to the industrial company to organize the internal control work of the industrial companies, and weekly report on internal control weekly, timely reporting the progress of internal control, existing problems, solutions and difficulties encountered by various industrial companies, as well as matters requiring assistance from headquarters.

"These internal control commissioners are directly directed and managed by the internal control department of the joint stock company, and the wages are also paid by the stock companies."

Shen Lvyan said.

Business characteristics and risk control points are different.

Listing 15 years, consumers and

The familiar Shanshan stock has developed into a diversified group that is in line with the "three carriages" of the clothing industry, the lithium material industry and the venture capital business.

Faced with different types of industries, internal control obviously can not be generalized.

"Internal control is essentially business process management, and different industries are very different.

For example, clothing brand operation and venture capital business, without involving production and processing, there is no raw material procurement, nor too complex labor relations. "

Shen Lvyan said.

This also determines that different industries have different risk points.

"For example, the biggest risk point of clothing brand operation is inventory, purchase and sale rate and single store benefit, while production enterprises are raw material procurement and quality control."

To this end, the Ministry of internal control has not only carried out 11 major business cycle systems, but also put forward a special management framework for different business sectors. For example, in order to improve the quality and efficiency of internal control of various industries, for example, the clothing development and procurement management procedures guidance (Trial Implementation) and direct shop closing procedure guidelines (Trial Implementation) have been supplemented and implemented for Shan Shan clothing enterprises.

Shanshan reported in 2012 last month that the net profit of investment business in the first half of this year was 34 million 820 thousand yuan, accounting for 38.58% of the net profit for half a year. It was the only increase in the three main industries over the same period, and exceeded the clothing business.

As for Shen Lvyan, "we mainly reduce our risk by controlling the risks of others.

Many times, a project will last for 2~3 years, and the business environment and market environment are constantly changing. There are many uncertainties. This requires internal control personnel to track and analyze continuously.

In 2010, when the Ministry of internal control showed signs of the European debt crisis, the early warning of the withdrawal of an investment in an energy-saving lamp manufacturer in Yuyao not only did not suffer the loss of market shrinkage, but also achieved good returns.

"Although the Commissioner of internal control also depends on the prospectus and the report forms, it is more important to check whether the Vc firms is doing the monthly review.

The company's financial statements, monthly professional analysis of the investment market, and so on, in short, is to see whether it has been able to track and control the risks of others.

Shen Yan Yan added.