The Commercial Bank Of China Group Affiliated Enterprise Risk Control Research

With ever-deepening development of the socialist market economy in our country, some profitable enterprises gradually turn into enterprise groups. Because of the large scale, great profitability and business attractions, enterprise groups can bring substantial economic benefits to commercial banks, and therefore are favored. However, risks involving operation, finance and internal affiliate transaction within enterprise groups are much higher than single enterprises. It will certainly cause huge and intractable losses to commercial banks if these risks are not treated properly from a macroscopic view.The essay begins with the definition of enterprise group and risk analysis, proved by actual cases. It elaborates the current situation of risk management of enterprise groups in a representative state-owned commercial bank with the data and statistics, and analyzes the problems of risk management of enterprise groups which commercial banks may encounter. In order to quantify the risk degree of enterprise groups and eliminate the influence of internal affiliate transaction, while taking the differences of operating situations and financial benchmarks of all industries under consideration, the essay makes a study of three major industries, namely manufacturing, logistics and trading, and infrastructural construction. Meanwhile it constructs different top-down models to control the integrated risk of related enterprise groups. Finally, the essay puts forward some proposals for commercial banks to control conglomerate risks accordingly.