The Risk Management Framework Design For SM Sales Company

The change of the world energy structure and the improvement of the domestic economy structural transformation increase the competition of mining industry in China. There are some of the coal enterprises want to enhance their competitiveness especially in the risk control. But for most of enterprises, they are lack of the awareness of internal management and scientific control method due to they are in the long-term monopoly market. Those enterprises cannotimprove their management ability of risk prevention and short of competiveness in the market.SM Company is integrated in the coal transportation and sales, whose annual sales is 66 million tons and revenue is 17 billion Yuan. In the current circumstances, it is necessary for SM to raise the awareness and adapt the methods of how to control the risk in sales management and the market.It follows the way of "Theory-Analysis-Methods" to introduce this paper.First, it states the relevant theories and studies of risk management control. Second, take SM Company for an example, analyze the risk in market competiveness, price fluctuations, and the management of sales, operation and finance. Raise the question why the risk happened and how to control it.And finally propose relevant risk management suggestion and measure.Third, summarize the process of coal sales of SM Company, in order to design risk management system, for instances the target, flow, format and methods. Risk management procedure is embedded in the SM company economic activities.Meanwhile, establish executive ways in risk management framework, performance appraisal system, information system, culture and internal control. It not only guaranteesthe methods to be carried out, but also provides the theory and practice for SM Company sales development. In this way, it will improve the risk prevention ability and make a good example of how to control risk in mining industry.