Investment In Human Capital Risk Management Based On The Coso-of Erm Study

To survive and develop in fierce market competition, to establish itself in an unassilable position among various risks, an enterprise has to be fully aware of risks it is confronted with and has to found a managing mechanism of their risks. Timely and effective precautioning measures and systematic and standardized methods to identify, judge and control these enterprise risks should also be applied. All kinds of losses caused by risks are aimed to be reduced to the least using the lowest cost.The risk of human capital investment is always one of risks that the enterprise must attach much importance to amid various kinds of risks the enterprise is up against. In the new century, competition between talented people becomes more fierce and globalized day by day. To lower the risk of human capital investment in the process of competition, the integration of human capital investment risk to the whole risk-managing framework and the formation of quota and measures that are of practical guidance are doubtlessly of vital, meaning both in theory and in practice, especially in China, a country being in face of more severe risks and less developed economy.This thesis, firstly, clarifies the concept and characteristics of human capital. Then, it furtherly analyses the meaning of human capital investment and enterprise human captial investment. The concept, causes and categories of the corresponding risk of the latter are thusly led to .On the basis of thorough analysis of causes and categories of the enterprise human capital investment risk, this essay studies two important categories of risks, that are, the authorized risk and the loss risk of the enterprise human capital investment, respectively analysing their causes, characteristics and precautioning meassures.Measure to enhance enterprise human capital investment risk management is put forward in the last part of this thesis, that is, to enhance enterprise human capital investment risk management based on the integrated framework of enterprise risk management by COSO committee. This part at first briefly introduces relative theories about enterprise risk management. Then the background of COSO committee, major contents of its integrated framwork of enterprise risk management and the magnificance and limitation to enforce this integrated framework are introduced. At last, using eight key elements of ERM integrated framework to throughly analyze problems that should be paid attention in the value achieving prosess of enterprise human capital. Combining qualitative analysis and quantitative analysis, various risk control and risk judging quota to some elements among the gight have been put forward.