Study On Risk Management In Procurement Of HLJ Electric Power Company Limited

In order to the smart grid to cover all China, improving power quality, to ensure thestable operation of power grid,we should pay more attention on the security of the system ofpower grid when it is built. The quality of electric power equipment affect the safe operationof power grid.The equipment quality problems can cause not only the system broken alsosafety accidents, at last make great negative impact on the society.In the procurementprocess, electric power material companies should ensure the quality of equipment using therisk management. Risk management focuses on the risk and risk control technology. Usingthe risk identification, risk measurement, risk assessment control the risk and make propertreatment for the loss. In this paper, the risk management process is divided into riskassessment and risk management, and methods of procurement risk management should beused in different stages of risk management. Using risk identification, risk measure and riskevaluation,we can find the risk factors in procurement activities, and how they impact theprocurement. Risk response, risk monitoring and risk control in the stage of riskmanagement, can effectively reduce the probability of occurrence of accidents in theprocurement process and the magnitude of loss. In this paper, the current managementconditions of HLJ electric power company as the research object, I put forward somemanagement problems in this company. Using the application of risk management andanalysis tools, a comprehensive and systematic analysis of the factors affecting the HLJelectric power company during procurement process and potential risks are gaven. Thepotential risks contain legal risk, honest risk, public opinion risk, performance risk,efficiency of public opinion risk.Some measures to deal with these potential risk are putforward. At the end of this paper, the improvement measures about the cultural atmosphere,the risk management organization, audit institutions, to avoid the bidding risk, legalsupervision and information system for electric power company in HLJ Province are putforward.We hope the paper can help the company achieve better procurement riskmanagement.