Coso Enterprise Risk Management Framework For Applied Research In China's Insurance Companies

Insurance is an industry with high risk. After the three-year protection time for our Insurance Industry, the international challenge our insurance companies are going to face is greater. Meanwhile, since they are expanding business scope, innovating and investing more on bonds, domestic insurance companies'risks are more and more complicated. In order to subsist and become even more competitive in the complex environment, it's essential for domestic insurance companies to build a sound risk management. The Enterprise Risk Management framework that is published by the Committee of Sponsoring Organizations offers all the corporations an integrative framework of risk managing. Many supervision commissions, international institutes and insurance multinationals are promoting this framework and have obtained great accomplishment. Therefore, this paper is to study the theory of ERM framework and its application in Chinese insurance companies, to give some instruction to the development of the risk management of Chinese insurance companies and to improve its risk management work.This article is composed of six sections.First section is introduction, which shows the research background and relative literatures.Second section is study on ERM framework of COSO, which includes its contents, meanings and practice.Third section is analysis on the feasibility of ERM framework practice in domestic insurance companies.In the forth section the author brings eight elements of ERM into the insurance companies management, and constructs the risk management framework of insurance corporations.The fifth chapter is the policy suggestions of improving the risk management of Chinese insurance industry and the last one is a whole conclusion.