On Framework Of All Risk Management In Shipping Enterprise

The shipping is a traditional high risk industry.There are inside and outside risk surrounding shipping enterprises.It is the most important issue for superintendents to apply for the risk management,especially all risk management.In view of lacking of risk management methods,this paper has pulled many kinds of financial tools into the shipping enterprise's risk management.This paper has introduced the definition of the risk and the risk management through reviewing the domestic and foreign literature,showing the main process of risk management in our country and abroad and introducing influential scholarly literature in detail,which clearly shows the process from the general to all risk management and points out the shipping enterprises making up all risk management structure become a necessary trend.On the basis of current all risk management structure,this paper put emphasis on the all risk management framework and the three most important parts in modern shipping enterprises.Aiming at the risk reasons and characteristics,this paper discourses three main aspects in risk managements which includes strategic risk,operation risk and financial risk.Strategic management mainly emphasized shipping enterprise do the right things, but not do the things correctly.Operational risk involves two parts—costs and profits. Fluctuation of the fuel oil price is the most main factor of the costs.Swap are used to management it and introduced its operating mechanism.On the freight risk management, due to the liner shipping freight relatively fixed,so the emphasis of this article on freight collected.On the another side,the dry bulk freight fluctuates greatly,the paper discourses how to make use of FFAs to manage profits and designs many kinds of trading strategies towards the current main chartering modes and raises concrete implementing cases.As to the spin-off risk produced by financial instruments,we also provide solutions.Financial statements and financial ratios are provided to analysis the enterprise's finance,and comparing COSCO and the average of shipping,finally draw the general characteristics of shipping enterprise finance.Many assets of shipping enterprises in the form of foreign exchange,they have to face an exchange rate risk. the general characteristics of shipping enterprise finance.Many assets of shipping enterprises in the form of foreign exchange,they have to face an exchange rate risk. There are so many articles talking about this issue,so this paper just quotes several common views.The last part constructs the structure of all risk management and business process in shipping enterprise,and introduces the risk management in COSCO group who stands in front of domestic field,which could act as the reference for other domestic enterprises.