Journal of Modern Business Administration

Internal control is a crucial component of corporate management, while institutional frameworks serve as the foundation of internal control. As a regulatory mechanism that standardizes behavior, institutional frameworks provide the structure and basis for internal control, making the two inseparable. Institutions are not merely mechanisms that regulate internal corporate conduct; they also play a vital role in risk management. By standardizing corporate behavior and procedures, institutions help mitigate potential risks and provide a framework and basis for risk management. This article examines the integration of internal control systems with risk management concepts through institutional development, drawing on the institutional system construction of BHI Company. It explores perspectives such as institutional planning management, risk management-based institutional formulation processes, and the supervision and inspection of institutional implementation. The aim is to offer insights for state-owned enterprises in establishing and improving modern corporate institutional systems and fully implementing the principle of "governing enterprises through institutions."

Institutional frameworks; Internal control; Risk management