The 2nd Pipeline Company's Establishment And Operation Of Legal Risk Management System

Nowadays in China, lots of pipeline construction companies have relatively low estimation for legal risks, which influence the operation, management, construction and production of those companies. Meanwhile, they also lack necessary planning, analysis, estimation, treatment and control for legal risks, which lead to unnecessary losses. Therefore, the identification, estimation, evaluation and control for legal risks have become a pressing task for construction companies. With the fast development of market competition and economic globalization, legal risk management has gradually aroused great attention of construction companies from all fields of engineering construction.The article firstly introduces the general concept of risks and legal risk management, as well as characteristics of legal risks for pipeline construction companies. Secondly, it talks about the principles for pipeline construction companies to build up legal risk management system, essential preparations for prophase work of the construction and model for the system. Meanwhile, the article also did a deep research into risk management activities such as planning, identification, estimation, evaluation, treatment and control, in order to achieve systemization and institutionalization of legal risk management process for pipeline construction companies.In accordance with legal risk management system which includes risk identification, risk analysis and evaluation, risk treatment and control, the article summarizes possible factors for legal risks through a practical analysis of pipeline construction companies. It adopts a research methodology of both quantitative analysis and qualitative analysis to analyze, compare and evaluate the influence of those risk factors on company targets. Using research results of both domestic and foreign researches for reference, the article proposes treatment measures for big risks frequently happening in pipeline construction companies.Through researching on the practice and application of enterprise management in China Petroleum Second Pipeline Construction Company, the article initiates practical, effective and normative ways to manage legal risks, for the purpose of guiding and promoting legal risk management in pipeline construction companies. The article has practical significance for providing basic concepts and practical ways to China Petroleum Second Pipeline Construction Company in legal risk management. It also gives valuable guidance and reference to other pipeline construction companies as well as companies of other industries for dealing with legal risks.