The Actuarial Pricing Of The Enterprise Value Under ERM

With the changing environment of global financial markets, the traditional risk management model has been unable to meet the requirements of the enterprise. Enterprise risk management (ERM) is the improvement and upgrading of traditional business management, advocated by the modern enterprise management concepts.The purpose of this paper is to price the enterprise value, and to explore the impact of the ERM about the value creation. The paper is organized as follows:First, this paper defines the concept of ERM; Subsequently, this paper uses factor analysis to consider quantitative indicators and qualitative indicators to construct evaluation index system of enterprise risk, and uses Fuzzy Linear Programming Technique for Multidimensional Analysis of Preference (FLINMAP) to evaluate the enterprise's own risk profile; Finally, this paper uses Fuzzy Discounted Cash Flow Model to price the enterprise value, and thus explore the impact of the ERM about the value creation.In this paper, the conclusions as follows:(1)when using FLINMAP model to comprehensively evaluate enterprise risk, policy makers do not need to give the weights, but give the order of preference of the program and the index value of the evaluation objectives; qualitative indicators can also be described by fuzzy numbers. Moreover, the model has weight constraints, which prevents the occurrence of weight zero of the original LINMAP model, so the sort of accuracy can be improved.(2) this paper uses ERM to create the enterprise value mainly through reducing corporate financial distress costs, agency costs, corporate taxes, while the ERM itself occupies controllable costs, so the ERM can create value to the enterprise. Therefore, enterprises should make use of ERM.