Research On Foreign Trade Enterprise ERM System Building

Along with the rapid development of economic globalization, international trade activities are more frequent and complex, and market competition is more intense, and uncertain factors are increasing, resulting in enterprises face more risks. Currently, foreign trade enterprises face unprecedented challenges on risk management, making more effective evaluation, management and prevention on risk is particularly important.Enterprise risk management system is the most advanced systematic risk guard mechanism, representing the forefront theoretical and the best practices of risk management. The first part of this paper reviewed the current research situation and development of foreign trade enterprises' risk management. The second part expounded the related theory and formation and development process and superiority of enterprise risk management. By the analysis and comparison between《Enterprise Risk Management——Integrated Framework》and《Central Enterprise ERM Guidelines》, deepening the knowledge of enterprise risk management and concluding the main points of foreign trade enterprises carry out enterprise risk management which was used to guide the building of foreign trade enterprise risk management system. The third part analyzed the foreign trade enterprises'risks types, and discussed on the features of foreign trade'current risk and risk management defects from external risk and internal risk two aspects, then combed the general requirement of building foreign trade enterprise ERM system, on the base of which built the suitable ERM system for foreign trade enterprise, and focused on the discussion of enterprise risk management organization and program's establish and perfect. The forth part took the foreign trade enterprise exchange rate risk and credit risk management for example, and made a specific application of ERM system. The fifth part took the group enterprise——China General Technology Group for example, which is engaged in international trade business, introduced the effectiveness of enterprise implement ERM and the main management advantages and existing risks, and made suggestion for establishing perfect ERM system and the existing risks.