Research On Modern Enterprise Risk Management Framework

Along with the continuous change of the market environment, the risks thatenterprises face are also getting diversity and complicated. Whether enterprises carryon effective management and control to those risks, directly relates its survival anddevelopment. It is imperative for the domestic enterprises to strengthen and improvetheir external environment, and in the meanwhile, to establish and perfect their riskmanagement theoretical architecture and operating norms. Only in this way can theenterprises maintain a healthy development.Therefore, the research on risk and riskmanagement becomes the significant historical topic in the academic circles. Thispaper is precisely a new direction of the risk management research area. It aims tohelp enterprises establish a set of risk management framework so that they can knowthe risk better and manage it. In this artical, our viewpoint is this: at present, there isno authoritative theory of risk management that is accepted and approved widely likethe American COSO-ERM framework. As a result, Chinese enterprises could regard itas a guide theory, absorb its advanced ideas, hold its key factors, and then build theirown risk management framework according to theiractual situation.The main contents of this paper are as follows:Based on the foundation of knowing enterprise risk management again,Partâ… (namely the charter 2)first carries on a theoretical analysis to the enterprise riskmanagement from the angle of strategic management theory, system theory,principal-agent theory, and the bankrupt cost theory. Then, it carried on the analysis tothe relation of risk management and internal control.Partâ…¡(namely the charter 3)mainly conducts the research to the content ofenterprise risk management framework, and introduces COSO-ERM framework.Through the comparison with "Internal control Conformity Framework", this partelaborates its theory contribution.Partâ…¢(namely the charter 4) utilizes COSO-ERM framework to analyze the case of China National Aviation oil Corporation, then elaborates the present situation ofChinese enterprise risk management, and analyzes the reason.Partâ…£(namely the charter 5) first proposed the enterprises follow the validity,comprehensive, the systematic characteristic, humanist, the cost benefit principlewhen they build up enterprise management framework, then proposed the basicmentality and strategy of building up enterprise management framework.The innovation and the characteristic of this paper are as follows: It carries onmore exhaustive theoretical analysis to enterprise risk management from the angle ofstrategic management theory. This can promote risk management to the strategicmanagement altitude. Moreover, on the base of profiting from the COSO riskmanagement framework, it carries a preliminary discussion about establishingChinese risk management framework in tow aspects-both theoretical research andsolidservice. We propose several tentative plans of constructing theory system of riskmanagement framework and some basicmentalitis about constructing riskmanagement framework for Chinese enterprises.