Optimization Pathways for Internal Control System Construction in Preventing Enterprise Operational Risks

Abstract

As economic uncertainty continues to mount, enterprise operational risks have become markedly more complex. Attention has gathered around the internal control system (ICS), an institutional foundation for risk prevention. Yet in some enterprises, governance responsibilities are poorly implemented, key risks inadequately identified, position-based checks and balances weakly designed, and internal supervision and accountability insufficient. System design and implementation effectiveness thus diverge. Drawing on institutional analysis and a review of enterprise internal control practice, this study systematically examines the theoretical logic by which the ICS prevents enterprise operational risks. The analysis identifies four key pathways: accountability strengthened at the governance level; improved risk identification, assessment, and early warning mechanisms; enhanced segregation of duties (SoD), information communication, and coordination; and a reinforced closed loop of independent internal audit (IA) supervision and rectification accountability. When the ICS is deeply integrated with business processes, it can effectively enhance corporate risk resilience and operational robustness.