| In the process of the transition of the highly centralized national planed economy to a competitive market economy, enterprises are thrown into the survival-of-the-fittest risky market, to which the old values, customs and institutional models are not so well accustomed. The fast-changing market economy and the situational fluctuation of the enterprise management factors are likely to lead the enterprise to the exposure of all kinds of risks or even worse to closedown or bankruptcy. Hence a task of top priority for the enterprises thus far is to be aware of the risk dimension of market economy, understand risk rules, to effectively control and reduce crisis induced by these risks so as to enhance the enterprise's ability to survive and develop in the competitive market. This dissertation focuses on building enterprises risk financial treatment, and discusses the new challenges on risk management due to ownership structure change, industry institution transition, and modern enterprise institution establishment. To create risk financial treatment mechanism compatible with the operation goals of enterprises is imperative now. Such a claim is the inner requirement of economic interests and that of outer environment. In this dissertation, several problems existing in insurance system of enterprises in our country are summarized and analyzed. Linked with the new situation of economic system's reforming, the suggestion of solving these problems and perfecting the insurance of enterprises is proposed. The author starts from the analyses on the principles of risk financial treatment, then compares the costs and benefit of two modes, influential factors on decision. Finally, she attempts to discuss how to set up an effective risk financial treatment mechanism in China.The dissertation is made up of preface and main context. The preface assesses the theme, research method, and structure of the article and defines some key concepts.The following is the four parts of the dissertation:Chapter 1: A general analyses on general principles of risk financial treatment. According to who will be the final acceptor of financial risk consequences, she divides the risk financial treatment into risk transfer and risk retention.Risk transfer includes ownership transfer and alternative funds compensation. Once ownership transfer is finished, enterprises need not to conduct risk financial treatment on the assets concerned. Hence the author focuses on the second form, and further divides it into insurance transfer and non-insurance transfer. Non-insurance transfer depends on contract signing, and avoids special commissions, and costs less. However, due to its legal terming, it's subject to some restraints, hence not the subject of her article. Insurance transfer possesses universal adeptness to static risk and become a common choice.The analysis on risk retention concentrates on the reason, financial arrangement and its impacts. Risk retention could be passive or positively retain risk according to its own conditions. Considering risk financial treatment arrangement, we could record loss into operational expense, or contingency fund, or set up captives. There're some limitations to risk retention, such as financial strength, risk control ability, and taxation and monetary policy and so on.Chapter2: The establishment of institution should take the advantages of multiple policies and consolidate them into an organic unit. This chapter surveys the decision making process. It first assesses the operational goals, risk management, personal difference on decision maker, enterprises culture, environment and industry efficiency and so on, and the subjection and uniqueness in decision making of enterprises. The second part uses expected loss technique to estimate the expected loss in scenario of risk transfer and risk retention, and compare their differences. Then she analyzes the different decision making due to different influential factors.Chapter 3: the author analyzes the relationship between insurer and risk financia... |
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