A Study On The Legal Risk Management System Of State - Owned Enterprises In Yunnan Province

With the rapid development of China’s economic society, the operationenvironment at home and aboard of provincial state-owned enterprises has changed,and the market competition becomes more and more fierce. The enterprises areconfronted with a issue that how to defend and deal with legal risks, for which theregular enterprises administration urgently demand.Yunnan Province is located in the southwest border of motherland. The riskmanagement mechanism of Yunnan provincial state-owned enterprises has been set upat primary level at present. The control work of legal risk management existsadvantages, such as shortages of system building, rigid mechanism, the managementlayer of enterprises tending to relief afterwards instead of taking precautions andtaking control during the process. Besides the legal departments and the legalpersonnel working as firemen who are exhausted of facing all kinds of complaints,conflicts and litigation are incompetent to analyze and summarize the predominantlegal risks for enterprises running, and fail to make suitable proposals for the integrityrisk defense and resolution plan with the demand of the enterprise practical operation,which is unable to form scientific and regulatory legal risks management. In order todefend and deal with legal risks in fierce commercial and legal environment, theimportant and urgent approach is to establish the enterprises legal management withthe priority of chief legal consultant for regular administration of provincialstated-owned enterprises. The enterprises legal risks which cannot be controlled andsettled in a scientific and reasonable pattern might limit the comprehensive andhealthy development of provincial enterprises in some extent.The thesis researches and summarizes the issues in the risk managementmechanism of Yunnan provincial state-owned enterprises. By studying a typical example of Yunnan provincial stated-owned enterprises, Yunnan Coal ChemistryIndustry Group, in the microcosmic view, the thesis discusses the problems in thecourse of the company’s operation on risk management mechanism, analyzes anddiagnoses the symptoms of legal risk management in Yunnan provincial stated-ownedenterprises, and points out the reason and root of exiting issues. According to thepractical operation of Yunnan Coal Chemistry Industry Group, the thesis providesvaluable suggestion for establishing legal risk management of enterprises andconcrete measures, which expects to improve enterprises risk control mechanism, tomanage the legal risks during the daily administration, to regulate the company’sconducts, to reduce the enterprises’ loss and enhance the operation quality for wholeYunnan provincial stated-owned enterprises.