Analysis And Control Research Of Strategic Risk In Xiangtan Electrical Manufacturing Corporation

Abstract:The development of globalization increases risks that enterprises are facing, therefore enterprise risk management concerns. In China, state-owned equipment enterprises, especially electrical equipment enterprises are regarded as one of the pillar industry of national economy. The innovation and development of its risk management affects the future and destiny of Chinese enterprises, especially when financial crisis sweeping the globe, China has to maintain growth, ensure stability and promote development. Under these circumstances, keeping stable development of the national economy and sustainable growth of enterprises would be of great significance to scientific study of the strategic risk management and control of equipment manufacturing enterprises. This paper takes Xiangtan Electrical Manufacturing Corporation-which is one of the typical representatives of China’s equipment manufacturing industry-as an example. Then this paper estimates risk values, analysis risk expressions, studies the reasons and impaction for risk by using the method of Risk Map. At last, it proposes the risk control measures from the current situation of strategic management of Xiangtan Electrical Manufacturing Corporation. We get the main conclusions as follows.(1) According to the sources of risk, strategic risk can be divided into industrial policy risks, strategic management risks, investment decision-making risks, technology and human resource security risks, branch control risks, and marketing risks.(2) The empirical results show that,90%of the events which influent the strategic performances are belong to major risk events, or important risk events. Those risk events take a higher likelihood of occurrence and influence, and have a bad impaction on the strategy, decision-making and development of Xiangtan Electrical Manufacturing Corporation.(3) The key point of strengthening strategic risk management is to strengthen the macroeconomic situation analysis, optimize organization processes, increase control of investment review, improve ersonnel selection and training mechanisms, certain Group’s management model, as well as foster technical and managerial skill.