Research About Enterprise Risk Management Framework Based On Value-Based Management

The occurrence of the financial crisis challenged the enterprise risk management. Establish comprehensive and systematic risk management system is the same problem the company managers and scholars faced. Large number of enterprises closed down, exposing the risk management challenges, under this ground, this paper proposed construction of risk management framework based on value-based management. The enterprise risk management's nature is enterprise value management, but have a review of previously issued by the internal control framework, and the COSO enterprise risk management framework,their point are both from the auditor's view to design, evaluation company's internal control or risk management system, not from corporate governance's point.As value-based management theory gradually get mature, theories about value management increasingly applied to enterprise management, under the guidance of these theories, scholars and enterprises researched a number of effective business management methods, and highlight the business management to a new level. We believe that standing from corporate governance's point, the essence of enterprise risk management is value-based management, should be taken seriously. Tt should be workable that the value-based management theory applied to the risk management framework. Therefore, through analysis COSO risk management framework, the author proposes to establish the risk management framework based on value-based management. To achieve the objective of value management, risk management framework will be the implementation of value management and implementation process and implementation process of combining. In this article, we use standard analysis method, first of all we analyzed the outbreak of the risk management problems under the background of the financial crisis,, and the status of enterprise management in China. Then, review the history on the theory of value management and risk management framework. Through theoretical explanation of these, find the entry point of this article. Next, the paper's building a brief analysis overall risk management framework. Make clear the elements of risk management framework and it's objectives of each level. then analysis every elements under the value-based management concept.complied with the analysis process, we cited some cases, the introduction of these cases, help to explain the problem more clearly. Finally, proposed research in the field.Purpose of this paper is that:the risk management framework based value-based management concept help the implementation of value management, in the same time, under the concept of value-based management, risk management framework can be improved.