Study Of Enterprise Risk Management Of YD Cutting Tools Based On ERM Model

As a critical component of equipment manufacturing industry, the domestic cutting tool manufacturing enterprises has taken the responsibility of re-energize local industry. However, most domestic enterprises, especially those private enterprises start lately and were experiencing a rapid grow or a transformation, thus their major focuses are in the regions of survival and business expansion, while the management capability, especially risk management capabilities and internal control postures experiences a great gap compared with international enterprises. This is also the value of the study.This article starts with YD Tool Company’s development strategy and current business, analyzed company’s target system including strategy, operation, compliance and financial reporting and the underlying risks in depth; meanwhile, this article came out with risk management solutions which leveraged my live experience of being a manager in strategy and internal control department.The Major tasks performed are as follows:Starting from enterprise’s industry, strategy and business operation performance analysis, the target system was derived from strategy deposition; meanwhile, based on the possible elements which ERM framework has mentioned, this article has identified and analyzed with quantification of all the key risks, measure their importance and possibilities and put them into a risk matrix accordance to the analysis of possible risk impacts and current risk management capability of the company, accordingly; then came out with risk reaction solutions of3key risks based on risk reaction theory and the ordering of all risk factors; meanwhile, a total solution of risk management enhancement with the consideration of performance reviews is delivered.