Research On The Comprehensive Risk Management System Of Shanxi Investment Group Limited

In today’s complex and ever-changing global environment of risk, understanding the risks fronted by enterprises and adopting a more dynamic strategy to carry on overall risk management has become one of the most important issues of business. It’s very important for the enterprises’operation and development. The state-owned investment company is financing subject and investment subject of the state-owned assets operating. As the market carrier of state-owned economy and structural adjustment, The state-owned investment company plays a important part in guiding investment, promoting industrial restructuring and the rational distribution of the national economy. Through the operation of the market, the state-owned investment company can promote optimization allocation of the state-owned capital and increase the value of state-owned assets. Facing the fierce market competition, Shanxi Provincial Investment Group Co., Ltd. actively carried out strategy of internationalization and speeded up the improvement of the traditional management model. It insists on technology innovation, system innovation, and management innovation, undertaking a comprehensive risk management, and constantly enhancing the competitiveness of enterprises.In this paper, on the basis of the theoretical review of related literature, we take the case study research methods, and research the status of risk management, taking the Shanxi Provincial Investment Group Co., Ltd. as research object. This paper borrows ideas from COSO’s Enterprise Risk Management-Integrated Framework (ERM) and the2002Sarbanes-Oxley Act, in accordance with the basic norms of the central enterprise wide risk management guidelines and the Ministry of Finance internal control requirements. This paper also makes a tight coupling with the risk management of state-owned investment company, and makes a system analysis of the problems of state-owned investment company’s risk management. And the paper carried out a comprehensive assessment of the risk management of the state-owned investment company, and summarizes the specific risk events and management control methods. We also established a comprehensive risk management system for state-owned investment. Aiming at internal and external risk factors, we give specific recommendations for optimization and related measures, put forward the solution of major risk events, and build a model system. So it can help to strengthen internal controls for state-owned investment company, and reply to external changes in the risk and provide a reference implementation of a comprehensive risk management.The paper carries out the research on the state-owned investment company’s overall risk management. This paper has the theoretic value, and is important to practical usage. The implementation of Enterprise Total Risk Management is not only in the need of the in-depth study of the internal control theory of enterprises, but also the requirement of improving the theory of risk management system. After well analyzed various risks that the companies will confront, the state-owned investment company should deepen the study of internal control, carefully learn on the risk management framework, and continuously improve their risk management level to ensure that the value of its assets is maintained and increased. This article researches on the risk faced by the state-owned investment company and the existing problems. It helps to clear related connotations of risk management, to guide the company to establish a comprehensive risk management system, and thus help to improve its risk management and reach risk management objectives. Therefore, studying and implementing of enterprise risk management is very important to enhance the company’s strategic management, the value of the company and the competitive advantage.Main conclusions:First, the state-owned investment company has been conducting a thorough and effective risk management, and achieved positive results; Second, the company should pay attention to external management environment, processes, and control; And the third, to propose specific recommendations for improvement, measures and countermeasures according to the existing problems of enterprise risk management. This article suggests that state-owned investment company should take the following practices to obtain stable development, sounding risk management organization system, specifying responsibilities of all levels in risk management, vigorously strengthening the construction of a risk culture, constantly improving the management process, attaching great importance to the construction of information systems, and strengthening strategic risk management control to realize the risk aversion and control.