Frontiers in Business, Economics and Management 
ISSN: 2766-824X | Vol. 5, No. 2, 2022 

 

37 

Risk	Identification	and	Coping	Strategy	Analysis	of	
Listed	Companies'	Capital	Management	Under	the	
Centralized	Management	Mode	
Xu Chen, Jingjing Yang, Ruonan Zhao and Le Gao 

Anhui University of Finance and Economics, Bengbu, 233030, China 

 

Abstract: In order to improve their competitiveness in the market, listed companies have transformed from the original single 
production management to the centralized production management mode, and realized the optimization and integration of the 
internal resources of the enterprise. With the change of enterprise management mode, its capital risk has also changed. Listed 
companies adopt the same standard in capital management and use. This paper analyzes the capital management risk of listed 
companies under the centralized management mode, identifies the capital management risk from the perspectives of budget, 
allocation and settlement, and proposes a capital management risk prevention strategy according to the risk content. 

Keywords: Centralized management model, Listed company, Capital risk, Risk identification. 
 

1. Introduction 
In order to expand the scale, listed companies use mergers 

and acquisitions to change the original business model of a 
single enterprise, and adopt a diversified approach to business 
management. The chain effect has improved the risk response 
ability of enterprises. But at present, capital is the guarantee 
for listed companies to continuously expand their scale and 
improve their competitiveness. Through capital flow and 
capital risk identification, it is helpful to understand the 
capital risks of the company and improve the operating 
efficiency of the company. 

2. Analysis of Enterprise Fund 
Management Under Centralized 
Management Mode 

2.1. Fund Management Mode 
There are five forms of centralized fund management mode. 

The first is that the subsidiary does not set up a financial 
department, and the parent company is responsible for fund 
management, and the subsidiary’s reserve fund is managed or 
the mode of unified income and unified payment is carried 
out. One is that the enterprise establishes a settlement center, 
establishes a special fund settlement department to manage 
fund activities in a unified manner, and uses the settlement 
system to record and monitor fund flow and capital situation; 
Financing and credit functions, realize the financing of 
internal funds and form economies of scale; the fourth is the 
financial company model, in which the listed company 
establishes an independent financial management department 
to provide financial services for the parent company and 
subsidiaries of the listed company and improve the efficiency 
of capital use[1]; The five is the management mode of using 
the capital pool. The listed company cooperates with the bank 
to open subsidiary accounts, manage the limit and balance, 
and after the parent company reviews and approves, realizes 
the use of the subsidiary's funds, and realizes the allocation of 
funds according to the account[2]. Listed companies can 
reasonably adopt a scientific fund management model 
according to their business scope and actual needs. 

2.2. Advantages of Capital Management 
Listed companies apply centralized fund management to 

realize the collection and processing of funds for subsidiaries, 
and scientifically allocate internal funds to achieve effective 
supervision of fund activities. Listed companies use the 
centralized fund management model, which has the following 
three advantages: First, it can achieve the goal of optimizing 
fund management, realize the optimal allocation of internal 
funds of the enterprise[3], and improve the scale efficiency of 
enterprise operation and management. The parent company 
can keep abreast of the capital situation of its subsidiaries at 
any time, formulate a more complete capital use system and 
internal management mechanism, and reasonably allocate the 
capital use between the parent company and different 
subsidiaries, so that the internal turnover of funds is more 
flexible and can be reduced through decision-making. Capital 
risk; second, it can reduce costs and improve capital rate of 
return. The centralized management model used by listed 
companies makes the use of internal funds more flexible, 
changes the previous information asymmetry, reduces 
financing losses, and increases financing efficiency. 
Compared with the two lines of funds, the use of funds and 
the amount of funds used can be monitored in real time, which 
does not reduce the occurrence of information asymmetry, 
and effectively reduces the risk of funds[4]. 

2.3. Fund Management Process 
Use the centralized fund management mode to realize the 

scientific management of funds, take the fund budget as the 
core content, review the capital use of the subsidiaries, and 
realize the circulation of the internal funds of the enterprise. 
Under the centralized management mode, the income fund 
account and the expenditure fund account are managed 
separately, and the parent company's account has the authority 
to manage it, and can check the account amount, return and 
use funds at any time. The use of funds of the subsidiary is 
limited. If it exceeds the scope of the capital budget, it will be 
allowed to pay and use after review and approval. Funds will 
be collected by the parent company's account, and the 
subsidiary will be responsible for the income and expenditure 



 

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of personal funds[5]. 

3. Risk Identification of Enterprise 
Capital Management Under the 
Centralized Management Mode 

3.1. Risk of Capital Budget 
(1) Preparation risk 
In the capital budget management of listed companies 

under the centralized management mode, the funds needed to 
be used in future business activities are forecasted through the 
preparation of the plan list, and the funds are arranged, and 
the overall planning is carried out by compiling reports. 
Incorporate capital activities into the capital budget system[6]. 
If the accuracy of the capital required for budget submission 
and reporting is inconsistent with the actual situation, the 
capital risk of listed companies will increase. If the forecast is 
too high, the capital utilization rate may be reduced. If it is 
low, it will lead to a shortage of funds and financial risks. 

(2) Approval risk 
The fund approval process of listed companies under the 

centralized management model is more detailed and the 
approval procedure is more complicated. Whether the fund 
approval is passed or whether the approval is timely is 
affected by the personnel of the parent company is subjective. 
If the budget approval of funds does not comply with the 
principle of objectivity, or if the approval is not passed or the 
approval is not timely, it may lead to a loss of rationality in 
the allocation of funds among various departments of the 
listed company, which will reduce the capital efficiency, and 
may even cause serious damage. As a result, the Group's 
reputation has been affected to a certain extent[7]. 

3.2. Risk of Capital Allocation 
(1) Financing risk 
Financing risk means that when an enterprise has financing 

problems, it needs to raise financing from the perspectives of 
internal and external sources to expand the production scale 
of the enterprise. Fundraising behavior will have an impact on 
the operation and production of the enterprise, thereby 
increasing the financial risk of the enterprise. Specifically, the 
financing risks of listed companies are mainly reflected in 
three aspects: first, if the financing is not in place, it is difficult 
to obtain sufficient funds, which will lead to a shortage of 
funds for the enterprise[8], which will affect business 
activities or investment behavior to a certain extent; It is the 
cost risk of financing. Listed companies generally obtain 
credit through financial institutions, or obtain funds through 
bank loans and issuance of stocks and bonds. If the internal 
information is asymmetric and the debt cannot be repaid when 
it expires, it will lead to damage to the corporate reputation 
and capital risk. Increase; the third is the risk of financing 
structure. By comparing the ratio of self-owned funds to debt 
funds, and the ratio of long-term liabilities to short-term 
liabilities, the financing risk of the enterprise can be identified. 
If the proportion of debt funds is too high or long-term 
liabilities are low, then the enterprise increased financial risk. 
If the source of funds of listed companies is relatively single, 
the risk of the company will also increase. 

(2) Investment risk 
In order to obtain additional funds and improve the 

utilization efficiency of funds, listed companies will use 
investment to obtain additional income. The investment 
behavior of listed companies is decided by the members of 

the board of directors and shareholders, and the investment 
plan is formulated and approved. Under the centralized 
management model, the parent company participates in the 
investment behavior, but there is a risk of investment 
direction manipulation, and it is impossible to accurately 
select the one with higher returns. investment increases 
investment risk. Identify the investment risks of listed 
companies, which mainly include investment direction risk 
and investment efficiency risk. Investment direction refers to 
the situation where funds cannot be quickly recovered due to 
deviations in investment direction, and the normal operation 
of the company's internal funds cannot be guaranteed. Unable 
to control the investment returns, making the capital 
allocation efficiency too low. 

(3) Risk of capital occupation 
In the process of capital allocation of listed companies, if 

their own funds are sufficient, but funds are still borrowed, 
the responsibility will lead to the impact of financing 
activities. Listed companies have relatively strong external 
financing capabilities, and the process of obtaining external 
funds can meet the company's capital needs. However, if they 
carry out credit or extract funds for operation at the same time, 
the risk of capital occupation of the company will increase. 

3.3. Fund Settlement Risk 
(1) System risk 
The centralized management mode realizes the centralized 

management of funds based on the information system, which 
improves the management efficiency. The fund management 
system is the core platform for centralized fund management 
of listed companies[9]. While providing fund management 
services for enterprises, it also makes the security risks of 
funds. In addition, if the authority of the information system 
is tampered with, the system crashes or is invaded by 
outsiders, it may lead to an increase in the financial risk of the 
enterprise. 

(2) Operational risk 
Operational risk refers to the risk of funds caused by human 

operation. Listed companies use manual approval to approve 
the application for funds of subsidiaries. If the approval 
personnel or financial personnel make mistakes in the 
operation, or do not approve in accordance with the process 
specifications, it will lead to The capital flow of subsidiaries 
or departments is abnormal, resulting in the inability of rapid 
turnover of funds, resulting in capital risks[10]. 

4. Countermeasures for Enterprise 
Capital Risk Management Under the 
Centralized Management Mode 

For various risks under the centralized management mode 
of listed companies, the company must take corresponding 
measures to identify and manage the risks, adhere to the risk 
pre-control principle of "prevention first, governance second", 
and reduce the occurrence of capital risk problems. 
Management countermeasures are as follows: 

4.1. Countermeasures Against Capital 
Management Budget Risks 

(1) Strengthening budget management 
Listed companies should establish a sound capital 

management system, optimize existing budget risks, consider 
the impact of policy changes and market environment on the 
capital model, improve the internal governance structure, and 



 

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formulate a scientific budget management system[11]. First 
of all, the budget management system of listed companies 
should be open, fair and transparent, and attention should be 
paid to the division of post responsibilities of budget 
personnel. For example, the responsibilities of the Funding 
Committee include formulating funding methods and 
measures, balancing the budget plan, and assisting in budget 
implementation. In accordance with the rules and regulations, 
the budget preparers should clarify the budget objectives, 
implementation, assessment and other content in the planning 
documents, and make specific plans. Secondly, in budget 
approval, a standardized and standardized approval system 
should also be established, and future capital activities should 
be predicted through existing capital flows, and a loose and 
appropriate budget management model should be adopted to 
speed up the approval process and approval efficiency. In the 
specific budget execution process, a dynamic and staged 
management model is adopted to track the execution of the 
capital budget in real time, analyze the reasons for the 
discrepancy between the budget execution and the actual 
budget, and continuously optimize the budget preparation. 

(2) Strengthen target management 
Budget target management refers to carrying out capital 

management work with the business development strategy of 
the enterprise as the goal, and integrating the strategic 
business plan with the capital target management work, so as 
to enrich the budget management work of each department. 
The market environment will have a certain degree of 
influence on the budget objectives of enterprises, and the 
strategic objectives of listed companies will also change. The 
formulation of budget objectives must adhere to the principles 
of adaptability and flexibility, and constantly adapt to changes 
in the market. In addition, the implementation of budget 
objectives should adhere to the principle of feasibility to 
improve the operability of budget objectives. The more 
commonly used goal management method is to establish 
scientific budget indicators. The selection of budget 
indicators is based on the actual strategic operation of the 
enterprise. The budget objectives are combined with the 
budget indicators, and the objectives are adjusted to avoid 
capital budget risks that are too large or too small. produce. 

(3) Scientific budget preparation 
Since listed companies have many departments and are in 

a complex environment, the budgeting method should be 
flexible. From the company's product technology research 
and development, production, sales and other channels, due 
to the content of budget preparation, taking into account the 
uncertainty of the capital elements in the company's various 
business activities, the estimation method and response 
method are used to calculate the possibility and budget. The 
implementation of the plan is different, and the capital risk 
prevention is carried out. For example, Kant's new listed 
company adopts the flexible budget method and integrates it 
with the rolling budget method to adjust the budget plan. The 
budget preparation content includes weekly budget, monthly 
budget, quarterly budget, annual budget, etc. Each cycle has 
A clear capital plan makes the budget preparation content 
reasonable and well-founded to deal with the potential capital 
risks of listed companies. 

4.2. Risk Countermeasures for Capital 
Management and Allocation 

(1) Strengthening internal audit 
In order to reasonably avoid capital risks, listed companies 

should strengthen internal auditing and evaluate the internal 
control effect of funds through auditing. Relevant personnel 
should set up a complete and independent internal audit 
organization, which is composed of members of the board of 
directors and audit committee, and links auditing with capital 
risk management. Control the degree of fit between the capital 
budget system and the execution system. The internal audit 
method is used to manage the internal funds of the enterprise, 
and the audit is carried out to the capital budget and capital 
allocation, and a matching performance evaluation 
mechanism is established. Identify unreasonable factors in 
capital management and improve capital management 
procedures to prevent losses. 

(2) Optimizing credit management 
Credit management can improve the efficiency of capital 

utilization of listed companies and help companies to 
reasonably avoid capital risks. Listed companies can adopt 
the method of introducing risk management mechanism, 
establish a credit database for enterprise personnel and 
enterprise departments, and conduct scientific credit ratings. , 
credit rating, etc. to determine the approval process, and sort 
according to the order of the rating. The construction and 
application of the credit database can record all the 
information within the enterprise and clarify the credit 
repayment method. Listed companies should establish an 
internal credit management system, formulate a sound credit 
management mechanism, and give priority to enterprises with 
relatively high credit ratings and good credit, so as to reduce 
the credit risk of internal funds. 

(3) Financial information disclosure 
Information disclosure can reduce the information 

asymmetry in the capital of listed companies, strengthen the 
constraints on the capital management process, and reduce the 
risks in the capital allocation stage. The information 
disclosure of listed companies should emphasize the 
standardization of information disclosure, clarify the content 
of disclosure information, disclosure form, disclosure method, 
disclosure object, etc., and formulate a complete information 
disclosure mechanism. Regulate the use of regular or non-
regular information disclosure methods by enterprises to 
improve the quality of information disclosure. In addition, 
listed companies should strengthen the supervision and 
management of information disclosure, strengthen the 
disclosure of problems in financial information, increase the 
supervision and management of information disclosure, and 
integrate financial information disclosure with reward and 
punishment mechanisms. The financial information 
disclosure of listed companies under the centralized 
management model should follow the principles of 
comprehensiveness and standardization, and deal with 
irregularities in information disclosure to ensure that the 
financial information disclosure of listed companies 
accurately reflects capital issues and provide guarantees for 
relevant personnel to make decisions. 

(4) Supervision of fund execution 
The construction of a control system with internal control 

and internal supervision as the core should strengthen the use 
and supervision of funds, and build a governance system with 
clear rights and responsibilities and good internal control, so 
as to improve the internal control structure and realize the 
supervision and implementation of funds. Listed companies 
can implement the post management model according to the 
flow of funds, use the way of special post specialists to clarify 
individual responsibilities in fund management, and establish 



 

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a accountability system to evaluate the fund management of 
relevant personnel by means of supervision. Prevent personal 
favoritism and other behaviors. By integrating the supervision 
mechanism with the reward and punishment mechanism, the 
incentive method is used to clarify the method of fund use 
management and flow supervision, which can effectively 
improve the work enthusiasm of the relevant responsible 
persons, reduce the risks in the process of fund allocation, and 
realize the standardization of the internal fund system. 
Process-oriented. 

4.3. Countermeasures for Capital Management 
Settlement Risks 

(1) Information system construction 
In order to effectively prevent capital settlement risks 

within listed companies, relevant personnel should introduce 
scientific financial information systems, apply them to capital 
management, and fully exploit the role of information 
systems in capital risk pre-control of listed companies. Listed 
enterprises should establish a fund settlement information 
system, financial data information system, financial 
information management system, and bank-enterprise direct 
connection information system according to the nature of 
financial management and their own conditions, and realize 
fund settlement through the information system to effectively 
prevent fund settlement risks. The construction and 
application of the information system can realize the dynamic 
tracking of funds, reduce the intermediate process of fund 
settlement, and use big data technology to realize the 
identification and analysis of financial data to determine 
whether there are certain risk factors. The information system 
should be managed by a special department , and the system 
operation authority should be divided. In addition, listed 
companies should regularly maintain the system, introduce 
new security protection technologies, effectively ensure the 
security of the system, and prevent problems such as 
password leakage and system crash. The construction and 
application of the information system establishes a system 
analysis model according to the purpose, usage, business 
scope, and business operations of financial funds by building 
a risk pre-control model. The model simulates the actual 
business situation of the enterprise, and conducts risk 
assessment according to the existing capital flow, capital 
amount, capital source, etc., and formulates the risk level, so 
as to determine the emergency prevention and control 
measures for capital risk accidents. Judging from the current 
situation, big data technology, cloud computing technology, 
etc. are deeply excavated in risk early warning and risk 
identification. It is convenient for enterprise internal control 
personnel and financial personnel to carry out risk 
management work. For example, a listed company divides its 
internal capital risks into five levels based on its actual 
development situation, namely, particularly major risks (red), 
major risks (orange), relatively large risks (yellow), general 
risks (blue), Small risks (green). Evaluate the risk factor of 
the capital settlement link, and adopt daily management 
methods and daily pre-control measures according to the level 
to effectively reduce the possibility of risk accidents, reduce 
the impact of capital risk accidents on the economic benefits 
of the enterprise, and help the enterprise to establish a more 
standardized and stable development. mechanism to improve 
the efficiency of capital utilization. 

(2) Strengthen personnel management 
The quality of fund management personnel is one of the 

main reasons for the occurrence of operational risks. The 
content of fund management under the centralized 
management mode is more complex, and the fund 
management work in the information age requires higher 
technical literacy of staff. Listed companies must strengthen 
the professional quality and technical quality of capital 
management personnel, and use training, assessment, training 
and other means to improve the technical application ability 
of capital management personnel. By means of ideological 
education, cultural edification, conference publicity, etc., we 
can improve the sense of responsibility and system of fund 
management personnel, and realize the importance of fund 
management work for the future development of the 
enterprise. 

5. Conclusion 
To sum up, listed companies still have certain problems in 

capital management, such as high loans, high capital 
occupancy rate, unreasonable debt structure, and low capital 
utilization rate. Under the centralized management mode, 
capital risk management activities are carried out throughout 
the capital activities. By strengthening internal control, 
strengthening system management, optimizing information 
systems, and strengthening internal auditing, the company's 
capital risk response capability can be effectively improved, 
and the market competition of enterprises can be improved. 

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