The influence of internal control system on the effectiveness of risk management in tourism companies of Khanh Hoa province

Abstract

This paper assesses the impact of level of internal control system on the effectiveness of risk management in tourism companies of Khanh Hoa province. The author mainly uses quantitative research method, conducting a survey of 182 subjects as company leaders or accounting officers in 76 Khanh Hoa tourism companies. The research result indicates four out of eight factors that constitute internal control system affecting the effectiveness of risk management in Khanh Hoa tourism businesses with the impacting level in descending order as follows: internal invironment, information and communication, control activities and risk responses. The internal control system by COSO 2004 explained 44.4% of variation to the effectiveness of risk management in Khanh Hoa tourism enterprises.