Enterprises To Invest In Risk Management Studies

With economic globalization as well as China's entry into WTO, China expedites its step of economic opening in order to be in harmony with world economics. Chinese enterprises step into a more opening economic environment, changing operating environment bring more precious opportunities as well as more ferocious threats to Chinese enterprises. Under conventional economic system and close economic environment, enterprise wasn't taken as a operating unit, but a manufacture unit, it is natural for enterprise lack of risk consciousness.There happened many fetal and far-reaching events in finance field in recent years, which made finance industry know the importance of risk management and struck tocsin to all enterprises in market economic system. Fortunately, finance industry made full use of this chance to strengthen risk management research and made great progress; unfortunately, non-financial enterprise didn't wake up to the importance of risk management, non-financial Enterprise Risk management was far behind of that in finance industry, and this is more prominent in China.According to modern financial theory, enterprise's value is the sum of future cash flows. Ensuring stable cash flow will enhance enterprise's value, risk management is a effective method for this aim. Western banking have been proficient in exercising Var to evaluate risk. Being assets, the paper believes Var can be used in non-financial enterprise risk evaluation to show risk exposure in a simple and clear way.This paper is established in non-financial enterprise, in another word, it is non-financial enterprise that carries through its risk management; banking and security industry are beyond the scope of this paper. Using techniques and methods in finance field for reference to offset the deficiency in non-financial Enterprise Risk management is this paper's main purpose. This paper is compose of five parts and interprets by the order of risk identity, risk evaluation and risk management. The first part is introduction, presenting this paper's structure, research background and so on; The second part introduces some issues relating closely to risk, the tangency point between indifference utility curve and efficient frontier is the optimal portfolio; The third part explores risk evaluation, this part begins with some risk factors affecting security's price and return, then analyzes the methods evaluatingdegree of risk, finally, introduces a more popular method of risk evaluation--Var; Theforth part expounds risk management, this part studies some risk control strategies correspond to specific risk mentioned above; The last part put forward some advice contrapose issues existed in risk management in China.The findings of this paper are as follow: risk management wasn't attached importanceto and laggard; we should strengthen internal control avoiding investment risk; we should foster high-level integrative talents with knowledge of risk management.