Management Of Risks In The Chinese Private Companies

Chinese private companies appear more and more after the open reform initiated by the policy designer. However, as the business market and competition become much complicated and sever many private companies disrupted or declined very soon at the stage of the business competition. Especially we found that some famous private companies of our country can not escape from the destiny that they are always prosperous for only three or five years by the analysis of the bankruptcy of the private companies. And the constant and instant bankrupt of many huge famous private companies makes us astonished so much. Learning from these cases before, many private companies began to be aware of the risks, such as investment risks, strategy risks, invent risks and so on. Therefore, some of them began to analyze the projects before they start and use some methods of risk control through the operation. However, the risks of private companies become more and more various and they are interrelated in essence. Most of important, the risks break out suddenly and cryptically which makes the private companies hasten to deal with them and cannot reply perfectly. The entrepreneurs of Chinese private companies wish to have the risk management which is fit for the Chinese circumstances, to analyze the risks of private companies completely and deeply and set up a perfect system of prevention and the advanced alarming of risks in the private companies. The purpose of this essay is exactly for this.The essay tries to build up a perfect system of prevention based on the idea of management ecology. Each private company is like an independent entity in the business market which is the ecology environment of companies. Similarly, only through studying the relationship of the companies and those with the business environment we can make the system of prevention perfect.The risks that the companies must face to are more and more with the complicated of the business ecosystem environment. Then how to efficiently turn the risks of the companies to be chances has been the major problemconfronted by the insiders. This conclusion of the essay is that establishing the risk mechanism which is used to the Chinese ecosystem environment is the key point of gaining rather than losing for the Chinese private companies. At the same time, the paper also puts forward the following viewpoints:I .Analyze the risks of Chinese private companies based on the special policy, human resources, funds, organization and market.II .Set up three rules of the counter plans of risks in the private companies based on the dialectics, systemic and circumspect management. At the same time, take use of the rule of circumspect management on the counter plans of the risks of blindly investment and innovation especially.El. Build up the models of risk control on strategy, products and investment and set up the ideas and frame of the advanced alarming mechanism of risks.IV. Systematic management of Chinese private companies is most important for the counter plans of risks in private companies.V. Some counter plans of turning the risks to be opportunities.