Risk management focuses on adopting a systematic and consistent approach to manage all of the risks confronting an organization.With the emergence of world as a globe village, companies are diversifying their activities; result in the increase of risks. Besides the business core activities, the increased use of derivative products by both financial and non-financial institutions and recent events or scandals continue to demonstrate the need for enhanced standards and processes of control over risk. This is of greatest interest for multinational companies, insurance organizations, banks, securities houses and non-financial institutions given the extent of their business activities in derivative products.The objective of this thesis is to identify the role and importance of internal control system in good risk management practice with a particular emphasis on management structure and reporting system and in general with Principles of Corporate Governance and Risk Management. Our focus is on the China Aviation Oil Corporation Ltd., (CAO). We will draw attention to the regulatory environment and recent regulatory and supervisory developments with respect to risk management practice.To be able to fulfill the purpose of study, qualitative research method was considered, using an inductive approach of a single case study of China Aviation Oil Corporation Ltd., with company related research literature, Committee of Sponsoring Organization of the Treadway Commission and Fortis Bank as source of data.Based on the analysis, a number of observations were put forward in the conclusion. To begin with the strategy in relation to management structure and reporting system of CAO are employed after the company crisis for better control and reporting system. In addition, the role of information technology is considered in risk management. Meanwhile, the good governance and risk management according to Accounting Standards application in risk management system and corporate governance are included in the discussion. In attempt of entrepreneur risk management in the firm, we also discuss the role of Enterprise Risk Management on the organizational performance with different perspectives.