Product liability is an important problem faced by many manufacture companies. After entering WTO, the technology and quality management of China's manufactures are still under the international level, so our product quality lacks the competitiveness. For the majority of China's enterprises, product liability prevention is a new issue, and the domestic product liability study was limited mostly to the area of the law. How to establish an effective product liability risk management system from the enterprise's perspective has not been given the attention it deserves.Based on the situation above, this paper will stand on the profit of the enterprise, combining the law, insurance and management aspects, and discuss how to establish the product liability risk management system suitable for the enterprise itself, so as to foster a sense of responsibility, reduce the negative impact caused by product liability, and improve enterprise competitiveness in the market.This paper is divided into six parts. The first part and the second part are the overview of the product liability. The third part describes product liability prevention methods, dividing into two aspects, which are the risk control and risk transfer. And then it builds up a model to analyze prevention funding decision. The fourth part describes how to deal with product liability issues, focusing on the current hotspot, product recall. The fifth part is the core of the paper. In this part, it presents the establishment, implementation and evaluation of the product liability risk management system. The end of this part concludes with the internship experience and the case evidence. The last part gives the conclusion of the paper and the prospect of China's product liability issue. |