The Study Of Relationship Between Zhejiang Merchants' Risk Early-warning Maturity And The Performance Of Risk Management

Zhejiang merchants contributed much to the progress of Zhejiang's economy take-off. With the domestic markets internationalized, Zhejiang merchants and their products have to face the competition of state-owned, collectively-owned and other different types of enterprises. Otherwise they will suffer formidable challenges and risks from multinational and foreign enterprises. Once they subject to risk, without taking appropriate measures, the Zhejiang merchants will get into trouble.Increasing the risk early-warning maturity will puncture the negative effects of the risk quickly and reduce the loss of the risk quickly. It is beneficial to shape the good images of enterprises, promote a healthy and sustainable business, and build the harmonious society.The early-warning of enterprise business and the performance of risk management have close relationship. In this paper, it introduced the notion of maturity to measure the degree of the early-warning of enterprise business, and it divided the dimensions of risk early-warning maturity and the performance of risk management. Besides it considered the effect of characteristics of Zhejiang merchants to the relationship of risk early-warning maturity and the performance of risk management. Moreover, it established the logical model to these three factors, and putted forward assumptions.The empirical research used principal components analysis to extract factors. The assumptions of risk early-warning maturity turned hypothesis of immediacy, sensitivity, adaptive and flexible four dimensions to sensitivity, adaptive and flexible three dimensions. It used structure equation model to analyze the relationship between risk early-warning maturity and the performance of risk management and validated that risk early-warning maturity and the performance of risk management has notable positive correlation. It used multiple linear regression model as a tool to study the effects of characteristics of Zhejiang merchants to risk early-warning maturity and the performance of risk management. The assumptions were not validated. It drew the conclusion that characteristics of Zhejiang merchants had no effect on the risk early-warning maturity and the performance of risk management. Then it analyzed the cause and interpreted it.