Analysis And Corresponding Strategy For The Operational Risk Of Sinochem Singapore

SINOCHEM TRADING (SINGAPORE) PTE LTD (hereinafter referred as SINOCHEM SINGPAORE) is a wholly-owned overseas enterprise of SINOCHEM CORPORATION . With its main business in import and export of petrochemical materials, its dealing products cover the countrywide market. Decided by its dealing products, SINOCHEM SINGPORE has to face wide ranges of risks, including the great fluctuation of the oil prices, fierce contradictions between commodity supply and demand, credit environment absence and etc. This thesis will focus on all kinds of operational risks of SINOCHEM SINGAPORE and the corresponding strategies. It is divided to five chapters:The 1st chapter-PrefaceThis chapter briefly reviews the current situation of risk management of SINOCHEMSINGAPORE and emphasizes on introduction of the basic theory involved in thethesis, the target and structure of the topic as well as the possible achievements andlimitations.The 2nd chapter- Analysis of major existing risks in the operation of SINOCHEMSINGAPOREBased on the business operation of SINOCHEM SINGAPORE, this chapter analysesin details of the major risks in the business operation of SINOCHEM SINGAPORE,which includes commodity market risk, client credit risk, business model risk,contractual legal risk, cargo ownership risk in logistics, exchange rate risk as well asthe risk in organization structure and business regulation.The 3rd chapter- The risk management of SINOCHEM SINGAPOREWith reference to all the risks indicated in the 2nd chapter, this chapter discusses in details of the risk management measures in the business operation of SINOCHEM SINGAPORE, including the risk control, risk outsourcing and strategic cooperation in the aspects of system, budget, contract, logistics supplier, ERP and etc.The 4 chapter-The strategic transition and business model innovation of SINOCHEM SINGAPORETaking the successful example of the vehicle material business in business model innovation, this chapter, from the aspect of the company strategy and supply chain management, discusses the effects and significance of the strategic transition and business model innovation in risk management.The 5th chapter- Conclusion and outlookThe final conclusion of the thesis: Only through continuous business model innovation, increasing its business intension and gradual transition to the organizer and leader of the supply chain, can SINOCHEM SINGAPORE solve the problem from the root and avoid systemic risks.