Research On Risk Early Warning System Of State-owned Enterprises

Since China joining the WTO in2001, the economy from the high growth phaseenters retarder downward phase, the problems of state-owned enterprises whichcaused by high speed extensive development also will be exposed. The most seriousproblem is that the risk of state-owned enterprises is more species and more complex.But the ability to cope with risks is seriously lagging behind. The state-ownedenterprises is very important in the whole nation’s economy, but the theory ofresearching the risk of state-owned enterprise is still relatively small. If thestate-owned enterprise groups want to succeed in the fierce market competition, wemust deepen and expand risk warning research, strengthen risk management.Risk warning is the core of risk management, which related to the survival ofenterprises. How to effectively strengthen the capability of risk early warning hasbecome the focus of the attention and discussion in theory and practice. This papersummarizes the existing theoretical results, investigate the nature of the state-ownedenterprises to raise the risk of early-warning system, and try to apply it to practice,and field research in the coal industry in the large state-owned enterprises, whichincludes the executive body, early warning mechanism and early warning elements.This paper mainly adopts the research methods of normative analysis and caseanalysis. Firstly, the paper analyzes the relevant literature of the risk early warningsystem, define the relevant concepts on the object of study,and analysis of therelevant theoretical basis. Secondly, analyzes the mechanism of state-ownedenterprises to build risk warning system, from strategic risk, market risk, financialrisks and operational risks. Once again, building risk early-warning system based onrisk analysis, including indicators selected, model building, alarm assessment and riskresponse. Finally, on the basis of the early-warning system framework, the paperanalysis condition of SJ Group’s early risk warning to put forward the existingproblems and solving countermeasures.The main innovation of this paper are in the following points: First of all, thispaper uses the internal control theory, risk management theory combined withevolutionary theory, prediction theory and control theory to research risk early-warning system. Secondly, we build the risk early-warning system which executed bythe management of state-owned enterprises, including risk identification, risk analysis, indicators selected, model building, alarm assessment and risk response as the coreelement of the risk warning mechanism. Finally, this paper gives a case analysis of SJGroup, demonstrates the feasibility and effects of the theory.