Study On The Strategic Risk Management Of Beiqi Corporation Under The Circumstance Of Economic Globalization

Strategic risks management is an activity based on strategy management and risk management theory. It aims to control and management strategic risks factors by utilizing strategic risk management measures. In the trend towards world economy and trade globalization, domestic corporates are facing challenges in various fields, international macroeconomics, domestic industry policy, market demand and customer preferences are among many of those aspects. Therefore, in such a volatile environment, to improve corporate competitive edges, it is vitally important for domestic corporates not only to strengthen their corporate strategy management. But also need to study corporates strategic risks so that they're effectively recognized, controlled and hedged. This paper starts by examining the definitions and significance of corporate strategic risks and its management, followed by a theory-focused review of existing studies on corporate strategic risks factors and mechanisms by local and foreign researchers. Continuing from the above foundation, and basing on Beijing Automotive Works'(here after BAW) daily operations, this thesis gives a systematic analysis on BAW's strategic risks factors and strategic risks mechanisms. Deriving from the analysis, a strategy concerning the consolidation of strategic risk management structure, optimizing internal management, establishment of strategic risk alliances is proposed.This paper is divided into five parts:the introduction, summary and definitions of relevant theories, systematic analysis of BAW's strategic risks, the coping strategy for BAW to strengthen its strategic risks management, and the conclusion. Then the paper proceeds to the second part, summary and definitions of relevant theories. This section builds a framework for the study of corporate strategic risks management. After a brief review of corporate strategy and risks management, a discussion on strategic risks' definition, comprising elements, measurement is given. The section also gives an overview of economic globalization's significance and features. The third part is a systematic analysis of BAW's strategic risks under the globalization of world economy. The system-focused analysis comprises of 3 sessions. The first sessions examines the basic situations of BAW, the second session explores corporates'strategic risk factors from 6 aspects:global movements of production factors, market competition, economic cycle, corporate resources/capacity, and leadership. The third session studies the formation mechanism of BAW's strategic risks. The fourth part is the core part of this paper. A coping strategy for BAW to strengthen its strategic risks management under the trend of economic globalization is discussed in this part. BAW will need to consolidate its strategic risks management system on the warning of strategic risks. The strategic risks management strategy includes:establishing a sense of corporate strategic risks, optimizing corporate process management and consolidating corporate administration structure. This part ends with and investigation into BAW's external countermeasures to strategic risks management from the perspective of establishing strategic risks alliances. In the conclusion part, limitations of the paper are examined; it also gives a summary of the paper's core contents and proposes future study directions of the paper.This paper's originality lies in two aspects. Firstly, traditional risk management strategies mainly borrows instruments in the fields of finance and accounting, while this paper proposes a risk management strategy from the very field of strategic risk management: process management, strategic alliances and strategic flexibility. Secondly, on the subject of corporate strategic risks discovery and measurement, the paper combines the system focused method and the bubble sorting method, so that a new direction of further strategic risks analysis and measure is formed.