A Case Study On Risk Control Of CMES

Ocean shipping industry is a typical cyclical industry.From the second half of 2003,into the current round of economic cycle,dry bulk,tanker,container shipping market rise,capacity in short supply.Shipping companies expand,causing global shipbuilding climax to the first half of 2008 to reach the apex.With the outbreak of the financial crisis in the United States,the shipping industry goes into a slump.But by the end of 2009 to 2010,the market has a brief recovery and many shipping companies led the expansion of impulse once again.Soon because of the global economic recovery is weak and China’s four trillion stimulus ends,since 2011 the shipping industry goes into a real winter,transport prices falls sharply to below the cost line.So many large-scale expansion of the business lost into a huge loss situation,China Ocean is one of the typical.CMES is a century-old shipping company to tankers,bulk cargo transportation and gas transportation based industry.In the tide of this round of the shipping industry,the CMES relies on its historical experience and business intuition to accurately judge the market situation,to analysis of various types of risks faced.On this basis,CMES establishes a sound internal control system,and carries out risk control measures in times,to achieve effective control of the business risk and financial risk.Thus CMES achieves a stable high-speed development in the peak period,and still forges ahead in the industry downturn.CMES has a remarkable performance on risk control in the industry,and the analysis of the case studies will help companies identify risks and establish internal controls,improve risk control,especially has a strong cross reference for the traditional cyclical industry enterprises how to achieve the development cycle.This paper is divided into four chapters.The first chapter introduces the background and significance of this paper,reviews the relevant literature and also introduces the framework and research methods;the second chapter is the introduction of the case,we focuses on the risk control in different stages of CMES in the round of cyclical fluctuations,after the description of the basic characteristics and the new round of periodic wave of ocean shipping industry nearly ten years and the history and current situation of CMES;the third chapter analysis the risk control performance of CMES from the risk identification capability、internal control system、management risk and financial risk,and also revealing the differences and gains and losses in risk control between CMES and CHINA COSCO HOLDINGS CO,LTD;the fourth chapter summarized the experience and enlightenment we can get from the case: firstly,we should enhance the awareness of risk control in the process of strategic expansion;the second is to pay attention to the application of the qualitative analysis method based on historical experience and intuition;thirdly,we should establish and improve the internal control system through the combination of industry rules and characteristics of the enterprises itself;the last is to focus on formulating and implementing the risk control measures of management risk and financial risk.