Research On Risk Management Of Enterprises Organizational Innovation Under Circlar Economy

Environmental problems caused by the rapid development of the globalindustrial economy are restricting the sustainable development.The traditionaleconomic model is unable to adapt to the long-term development of enterprises,therefore it’s inevitable for enterprises to transform to the model of circular economy.Under circular economy, the demands of resolving the conflicts between economicgrowth and environmental degradation and improving the ability to use of resourcespromote enterprises organizational innovation. Howerver, the risk inevitable inenterprises organizational innovation has direct impact on success of organizationalinnovation. The organizational innovation is not one of important issues ofenterprises innovation and it has little research on organizational innovation risk. Theresearch on risk management of enterprises organizational innovation under circlareconomy is even much less. Therefore, research on how to prevente and control therisk of enterprises organizational innovation under circular economy effectively andreasonably is a vital topic.Based on the relevant theoretical research at home and abroad, this dissertationanalyses the motivations and resistances of enterprises organizational innovation andthe corporate behaviors. And then this dissertation proposes the risk managementstrategies of enterprises organizational innovation under circular economy.The risk matrix is been marked as the main method of identification of the riskof enterprises organizational innovation under circular economy. Combined withfeature of the risk of enterprises organizational innovation under circular economy,this dissertation designs the risk matrix with Borda, so as to identify and evaluate therisk factors based on the risk probability and the risk effect lever. The AnalyticHierarchy Process is used to assign weight for risk factors to evaluate thecomprehensive risk level of enterprises organizational innovation under circulareconomy. This dissertation recommends cybernetics as the main method to control the riskof enterprises organizational innovation under circular economy, combines thefeedforward control, process control and feedback control of cybernetics with theprocess of risk management including advanced prevention, process control and postprocessing and establishes the effective risk control system to manage the risk ofenterprises organizational innovation under circular economy.This paper takes the Valin Steel for example. Based on the research on thedevelopment status, this dissertation assesses the key risk point and the overall leverof risk of enterprises organizational innovation under circular economy and proposesthe risk control strategy based on cybernetics.