The Mechanism Probe Of Strategic Risk Management Of Trans-national Corporation

With the development of world economy and globalization, trans-national corporation play the most dynamical and influential role in this course. On the fast-change international technique market, the validity and effectivity of trans-national corporation's strategies have been seriously influenced due to the complex competitive environment, finite-rational decision-making capability, limited management ability and multiple operational goal. Systematic strategic risk researches began from the seventies of twenty century and reached the zenith at the beginning of nineties last century, while domestic interrelated researches just commenced. Strategic risk is an inevitable and realistic problem as well as the core managerial issue. It will influence the effectivity of strategy and competitive advantages whether trans-national corporation can establish perfect strategic risk management mechanism, face the risks forwardly, manage and even make full use of the risks or not. Just as the America Economist Galbraith pointed out: there will be two management topics in 21st century: one is Strategic Management and the other is Risk Management. With a view to the importance of strategic risk management, this essay reviewed the related international and domestic research fruits, then brought forward the concept of strategic risk, analyzed the strategic risk causes, identification, measurement, and assessment systems on the bases of industrial organization theory,strategic resource theory, strategic capability theory and Ansoff's ESO (Enviroment—Strategy—Organization)strategic framework, eventually explored from the angle of strategic management the strategic risk control tactics: Strategic Alliance, Correlative Diversification and Strategic Flexibility. The essay built the strategic risk management mechanism systematically. It is hoped that the framework presented in this article is a step towards improving the capability of trans-national's strategic risk management and its continuous development in the long run which will enhance the competitive advantage. Trans-national corporations should attach high importance to the strategic risks, establish and implement good risk management mechanism, cultivate their risk-forecast capability and learning ability. Everybody from the top management to the employees should involve in this movement. Today the challenge that the managers encountered is to minimize the risk while maximize the enterprise values, each trans-national corporation would get the best balance point of Risk/Return only if they set up precise risk conception and adopt effective strategic risk management systems.