Research On The Financial Risk Management Of Central Enterprises In The Angle Of Corporate Governance

As the reform of central enterprises is accelerated, the voice of being bigger and stronger is higher, the permeation with international capital market is faster, central enterprises began to involve in financial derivatives, however, the outcome always ends up with big losses. From the 1997 Zhuye Event to "68 central enterprises derivatives group losses", it caused adverse impact on the economy. We start being aware of the importance of management on financial risk in central enterprises. Before 2003, the research was mainly on how to divide politics and enterprises and how to build modern corporate system, etc. But many researches were more about bank credit than financial derivatives because of the limitation of businesses. In recent years, the theory and practice have set foot in methods and measures of financial risk management. However, the study is either on the enforcement of SASAC supervision macroscopically or financial risk technically and microscopically, the research about combining these two factors is fewer.Under these circumstances including central enterprise reformation, business model diversification and capital market globalization, seeking the underlying causes of these events for research motives, on the basis of introducing theory meanning and practical significance, we intend to summarize relevant research and practical experience, define connotative features of central enterprise financial risk and classify them. Afterwards, we discuss the intimate connection between financial risk management and corporate governance, point the importance of corporate governance on financial risk management and pinpoint the particularity in central enterprises. And then, this paper sorts out the recent central enterprise financial risk events and study common traits from perspectives of object, type, nature of business, correlation with international capital market and outcome. And according to the common traits, we demonstrate them linking events and understand the current situation and characteristics of central enterprise financial risk, and then dig the underlying causes from corporate governance to prove that the imperfection in corporate governance is source and crux of financial risk management failure and further make sure that perfect corporate governance system is premise and foundation of effective financial risk management in central enterprises, and also is central content of financial risk management under new historical conditions. Based on these, we intend to put forward policy advice from perspectives of corporate governance, containing institutional level and procedure and technical level. The institutional level explains that from perspectives of improving contributor system, establishing risk management committee and audit department, optimizing the stock ownership structure and promoting central enterprise stock diversification and improving incentive and restraint mechanism and etc. The procedure and technical level illustrates strategy through optimizing financial risk transaction process, enforcing financial risk precaution ability, setting up stop-loss limitation, emphasizing inter control and cultivating high-caliber personnel and etc. This way solves these problems accordingly combining macroscopic view and microscopic view. Finally, referring to these policies and methods, on the basis of central enterprise corporate governance structure, integrating risk management framework and financial risk management procedure and taking the above two levels as basic elements of corporate governance-based financial risk management, we intend to structure policy and procedure and technical double levels, decision-making and performing double systems and dynamic integration of corporate governance and financial risk management central enterprise financial risk management framework.