The Research Of Expressway Enterprise Risk Conduction, Ased On Structural Equation Model

Since2004the United States Committee of Sponsoring Organizations of the TreadwayCommission has announced "Enterprise Risk Management-Integrated Framework ", therewas a great upsurge in the study about Enterprise Risk Management(ERM) all around theworld. In order to implement enterprise risk management, the enterprise must have acomprehensive understanding of risk. The research at home and abroad about enterprise riskmainly focuses on risk identification, assessment and control etc. However, the risks arehidden among all aspects of the enterprise operation, and they interact and conduct with eachother. Taking expressway enterprise for example, this paper conducts research for enterpriserisk conduction, expecting to help understand the occurrence of risk and process of riskconduction and implement Enterprise Risk Management better. The main contents andconclusions of this paper are as follows:Firstly, on the basis of the existing research, through the research of expresswayenterprises, this paper divides expressway enterprise risks into five categories includingstrategic risk, operational risk, financial risk, legal risk and market risk and identifiessecond-grade risk indices mapping to the indices above.Secondly, taking expressway enterprise for example, this paper analyzes the keyelements of risk conduction and the conductive process of each risk. Expressway enterpriserisk sources has two kinds which are external and internal risk source. There are four types ofcarrier including information, material, capital and technology. Affected by the carrier,expressway enterprise risk sources conduct with each other among workflows and aspects inthe enterprise.Then, this paper analyzes the interaction relationship of different risks in enterprise riskconduction using structure equation model and draws the path graph. The result reveals thatmarket risk has a significant effect on strategic risk in the risk conduction process of highwayenterprise; legal risk, market risk and strategic risk all have significant effects on operationalrisk, among which legal risk plays the most important role and strategic risk takes the secondplace; market risk and operational risk have a significant effect on the financial risk. Finally, based on the above research, this paper analyzes enterprise risk management bytaking expressway enterprises for example and constructs the expressway enterprise ERMsystem.