Legal Risk Guarding Mechanism Of U.S. And The Implications For China

Since 1950s, Risk Management and Corporate Governance had been gradually built up. After 1980s, a few of corporations, which were rapid developed but lack of risk management, exposed a lot of potential problems which led the irreversible crisis. These crisis, for example, billions lose caused by British Barings Bank's collapse; Enron and Arthur Anders went out of business due to the accounting scandal of Enron, brought about bankruptcy and had badly impact on national economics. These lessons stimulated the development of Risk Management, accelerated the legislation of it in the whole world and finally started the quest of Risk Management in China.In 2006, State-owned Assets Supervision and Administration Commission had released'The all-sided guiding for the risk management for the central enterprises', which symbolized China had its own guidance documents about Risk Management. The article chooses Legal Risk Management as the object, hoping to build up the Legal Risk Prevention and Management System which suits to the present conditions of our country, with theoretical and empirical analysis.This article firstly introduces the history, background and main contents of U.S. Corporate Legal Risk Prevention System. The paper also reflects the China Legal Risk Management System under the background of the current worldwide financial crisis caused by American subprime mortgage crisis, and then applies such educed conclusion to the following concrete discussion. On top of, starting with the study of development and current situation of China Legal Risk Management System, connecting to the practice experience and finding of large, medium and small enterprises, the paper studies in details with perfecting the legal system of Corporate Legal Risk Management, for instance, risk management concepts, technologies or methods and means, and includes all aspects from arrangement of corporate governance structure to processes and operations of all business, from the perspective of comparative analysis. All of these are served for the Chapter Five. Considering the present practice on Corporate Legal Risk Management System and the legal circumstance of our country, this Chapter focuses on suggesting making special and operable enforcement regulations and perfects the relevant systems to regulate corporate risk prevention and management, in order to provide system guarantee for the smooth development of market economy in our country.