Research On The Evaluation Of BG Company's Operation Risk

In recent years,with rapid development of manufacturing industry and consistent growth of size and strength of related enterprises and continuous advancement of technologies they are using,China has become one of the countries with great output in manufacturing.With a large size yet average capability,China's manufacturing industry has unique characteristics.Some companies,with extensive management of operations and incomplete mechanism of risk control,incur frequent risk events in their businesses which lead to unhealthy operations and unsustainable development.In order to improve quality of development and realize transformation and upgrade,manufacturing companies must establish and improve their system on control of operational risks so that losses can be minimized and strive for competitive advantage through technological innovation and enhancement of management.BG Company is a large manufacturer with a strong overall strength in China which specializes in oil and gas tubes.With intensifying of competition and changes of internal and external environments,operational risks became apparent in this company.With operational risks facing this company as the subject,this paper,through objective and reasonable method,identifies,analyzes,and evaluates risks confronted by the subject.It also presents a practical risk control strategy based on actual situation in the operation and management of BG Company.Based on relevant theories on risk control and findings of relevant studies carried out both at the home and abroad and under the guidance of theories on comprehensive control of risks,this paper identifies and analyzes operational risks facing BG company.It builds a system with evaluation metrics on operational risks facing the company and calculates and assesses weights of various metrics through hierarchical analysis.With fuzzy synthetically evaluation method,this paper provides quantitative evaluation on 7 major risk factors including the risk in marketing and on overall operational risks and determines level of risks.Through identification,analysis,and evaluation on risks,this paper provides a direction for BG Company to enhance its prevention and control of risks and proposes suggestions in terms of aspects such as establishing a system for comprehensively controlling risks and improving preventive and controlling measures on major operational risks.