H Enterprises’ Operating Risk Analysis And Control

With the development of global economic integration，operating environment ofenterprises has changed dramatically， they are facing with more various andcomplicated business risk.The negative effect of business risk on the enterprises isincreasing. In order to prevent themselves from disastrous consequences in businessrisk effectively, enterprises should strengthen operating management and internalcontrol system. On the basis of the research and analysis, the thesis discussed theactual situation of H pharmaceutical enterprises and took the theory of business riskmanagement and internal control into practice. By the deep study of thecharacteristics, reasons and factors of the business risk, and through absorbing theexisting results of business risk management theories and internal control theories, thethesis aims to establish the business risk control system for the pharmaceuticalenterprises.In the thesis, there are three parts of business risk, namely, sales risk, accountreceivables risk and operating expenses risk. Sales risk refers to unmarketable riskcaused by fierce competition which was stimulated by a vast number of drugs in thesame category and a wide range of emerging alternatives from its competitors.Accounts receivable risk mainly refers to the risk of recovery of accounts receivable.In other words, after credit sales, the enterprise should take measures to avoid thepossibility of bad debts. The risk of operating expenses is primarily due to high costdirectly affecting operating profit in sales process or due to improper use. As forpharmaceutical enterprises, the risk of operating expenses focuses on pharmaceuticaladvertising, sales staff travel, and sales rebates and so on. On the basis of the above,the thesis discusses how to design the control system of business risk and doesempirical analysis about the case referring to H enterprises from four areas includingcredit risk control, sales control, operating cost control and accounts receivablecontrol. The result shows that internal control process optimization has a positiveeffect on operating risk management.