Risk Management Research Based On Corporate Governance Perspective

At present,the low benefit of many enterprises operating in China,the listed company does not regulate the operation of financial reporting,distortion,illegal phenomenon,the reasons for this situation are many,but the enterprise lack of internal management and risk control is the main reason.On the issue of the reform of state-owned enterprises,the theory and practice are not completely coincident,and the relationship between theory and practice is more complicated.Once the theory is doing practical guidance,but the overall trend of reform of view,promote the reform of state-owned enterprises in practice under the tide of the market,eventually get rid of the theory of constraints,a theory need to be studied carefully the subject.China's special system and regulatory environment,a series of problems exist in our state-owned enterprise's own system and development model,leading to the emergence of the company's risk management issues.Especially the ability to reduce the loss of function in the corporate governance of the company to resist risks,unable to effectively provide good service for the enterprise,affect the ability of the enterprise funds management ability and financial innovation,and even cause incalculable losses.Based on the above background,this paper from the perspective of corporate governance,through the China Huarong company case analysis on the issue of corporate risk management.First of all,from the ownership structure and governance,board governance,governance of the board of supervisors and senior management of the effectiveness of risk management;secondly,analysis of the actual existence of China Huarong company corporate governance mechanism in risk vulnerability;finally,elaborated to improve the risk management level through the improvement of corporate governance.The main conclusions of the study include:(1)the ownership structure of China Huarong Corporation has a absolute control over the shareholders' meeting,and can directly decide on the important personnel appointment and removal and major business decisions according to their own wishes.Therefore,it is difficult for the company's internal supervision mechanism to effectively supervise,and the mechanism of checks and balances with the board of directors is difficult to play.(2)Chinese Huarong's board of directors appointment and dismissal of senior executives decide directly by the State Ministry of finance,weaken the supervision of the board of directors of senior management and balance function,and seriously restrict the validity of corporate governance structure,leading to the board of directors,unable to give full play to the functions of the board of supervisors.(3)does not improve the incentive mechanism of the long-term compensation and company management level.Besides,in order to make the management too much emphasis on short-term interests rather than the long-term development of the company,at the same time may cause moral risk.(4)the information asymmetry of China Huarong company may lead to adverse selection and moral hazard.And regulators can not fully grasp all kinds of business information of China Huarong company,and it is difficult to find the company's operational risk timely and accurately,thus making it difficult to get effective supervision and risk control.(5)institutional investors have positive corporate governance role,which can effectively balance the self actions of controlling shareholders due to the dominance and lack of supervision,and balance the control of the controlling shareholder on the board of directors.(6)because of the internal control of independence and authority of the weak China Huarong,effective impact assessment,enterprise internal control system construction and supervision functions,from the internal control to have influence on risk management and internal control.Finally,based on the above analysis results,combined with the current development of China's central enterprises,from the ownership structure,board governance,governance of the board of supervisors,senior management and other aspects,and puts forward some improvement of China's central enterprises corporate governance and risk management policy recommendations.