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The Research On Risk, Risk Management And Control Of Parent Company And Its Subsidiary

Posted on:2011-07-11Degree:DoctorType:Dissertation
Country:ChinaCandidate:L L DuFull Text:PDF
GTID:1109360305483490Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
The enterprise group is a joint legal organization, composed of parent and its subsidiary companies, shareholding company, and other companies. It is the advanced stage of the development of the enterprise. The development of the enterprise group plays a significant role in both the market economy in developed countries and current economic development in our country.Under the support and encouragement of the government and the impulse of the enterprise expansion, there exists a boom of the enterprise group with the main body of parent and its subsidiary companies in the last two decades in China. The short history of the development of enterprise group, the shortage of experience and the particularity of its growth result in that, the development experience of foreign groups can not be transplanted simply. And then, there would be a number of inevitable problems during its growth, as well as a variety of complex risks from the external environment and internal system during the business process. Therefore, the further study of the risk conduction mechanism between the parent and its subsidiary companies in the enterprise group, the methods of measurement and management control of this risk would provide further understanding of the dynamic process and rules of the influence from the risk on the enterprise group from the perspective of process, and then an effective risk control can be given. So there is of great importance in both theories and practices of the study in this paper.Combinations of modern risk management theory, systems science, physics, modern control theory and other theories and methods are used in the study of the risk conduction mechanism between the parent and its subsidiary companies in the enterprise group, the methods of measurement and management control of this risk. The full context is organized as follows:Chapter 1 is a brief introduction of the purpose of this paper, the background, the significance, the content, the methods of the study, and the survey of the literatures.In Chapter 2, several risk measurement methods for current enterprise risk management are introduced, they are probability analysis, leverage analysis, capital asset pricing model, risk value method and the Monte Carlo simulation. Fault Tree Analysis was focused on, which is the main method used in this paper. And finally introduces the basic theory of corporate control. All above are the theoretical basis of this paper.Chapter 3 introduces the concepts of the parent and its subsidiary companies and analyzes its relationship and internal risk sources in details. These are the basis of the study of risk conduction mechanism.Chapter 4 analyzes the conduction mechanism of the risk between the parent and its subsidiary companies, specifically including the essence, types, elements and the process of the risk conduction. And then, quantitative analysis of the conduction mechanism is given.In Chapter 5, the fault tree analysis is used to measure the risk of the parent company with the business risk in the enterprise group as a sample. The analysis and measurement of this risk demonstrate the conduction and influence of the risk from the subsidiaries to the parent company clearly.Chapter 6 focuses on risk management of the whole enterprise group and internal control method of the value chain between parent and its subsidiary companies. And ERM model and internal control model under value chain are built, which would provide reference to the modeling of the risk management system in the enterprise group.Finally, we present our summary and concluding remarks in Chapter 7.
Keywords/Search Tags:enterprise group, parent company and its subsidiary, risk conduction, ERM, internal control
PDF Full Text Request
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