A Theoretical Study On The Construction Of Risk Management System Of Enterprise Group In China

Though the history of the development of enterprise group is merely 20 years or so, many problems have been exposed. The China Aero Oil, Xinfu Group, Monkey-king Group, Sanzhu Group, the Sanjiu Group, which all were sensational star groups of the past, were subject to failure with meteoric success. When we pondering on their short lives with remarkable ups and downs, the deficiency of enterprise group's risk management in China seems so protruding. Compared with single company, enterprise group is immersed in a more complex risk surrounding. Therefore, it's necessary to enhance enterprise group's risk management in China now, which is also an irreversible trend in history.Since the introduction of risk management theory into China in 80s 20th century, the enterprise group's risk management has witnessed noticeable advances in terms of control environment, capital monitoring as well as sense and capability of risk management. But there is still a long way to go. Thus far there exist no relevant standards serving as the yardsticks for the enterprise group's risk management. Taking into account the lack of experience and theory, it's necessary for us to refer to the advanced practices and theories from abroad, in a bid to enlighten the risk management in China. The risk management abroad has been expanded to comprehensive risk management from the original means of insurance. The issuance of ERM by COSO in 2004, an authoritative risk management framework, conveyed the quintessence of comprehensive risk management. Thus, based on such framework and the status-quo of enterprise group's risk management in China, this paper provides adjustments to the elements within the framework and reconstructs the 7-dimension system of ERM for China. That's, the infiltration of sense of risk management into the group's culture, the perfection of corporate governance (i.e. property ownership, organization, rights & duties) and the construction of the platform for risk management, the consideration of risk preference in mapping strategic targets, the centralized capital management and the optimized resource allocation, the infiltration of other auxiliary control activities (i.e. share ownership control, personnel control, budgeting control) into risk responses, the embedded information system tracing the risk management, the risk-oriented internal auditing monitoring the operation of risk management. Since the group's risk management...