Research On Risk Management Of M Company R&D Project Under COSO Risk Management Framework

In the complicated internal and external environment,enterprises are increasingly looking forward to improving their ability to respond to risks.Enterprises also have higher demands for improving their performance by managing risks.At this stage,when enterprises implement risk management,the most common problem is that their risk management is not systematic.Some situations are as follows: Risk management departments lack independence and cannot implement the function of risk management well.Risk management implementation procedures and methods are imperfect.The formulation of enterprise strategies is out of touch with risk management,risks are not considered enough during the project implementation process and the project risk management is irregular.As a result,risk management cannot be effectively implemented and the results,more than often,cannot come up to expectations.In order to adapt to the changing risks and the trend toward higher requirements for risk management in the new environment,COSO released "Enterprise Risk Management Framework: Integrating with Strategy and Performance " in September,2017,providing guidance on how to adapt to changes in the environment and implement risk management effectively,after the "Enterprise Risk Management Integrated Framework" released in 2004.Under the guidance of the COSO risk management framework,this paper analyses the existing problems of M company's R&D project risk management and how to implement the R&D project risk management effectively by using literature research,case study and a combination of qualitative and quantitative analysis.First of all,the paper analyses how to implement risk management after a review of literature and interviews with experts.Secondly,in view of the relationship between risk management at the company level and the project level,the paper,in accordance with theories and realities of M company,gives a brief introduction on how to optimize its company-level risk management,determining special risk management for R&D project based on risk assessment results of company level.After that,the paper analyses the problems of R&D project risk management in M company,illustrating how to identify the risk index well and establishes a model to evaluate the project risk index.A combination of qualitative and quantitative analysis,as well as Analytic Hierarchy Process(AHP)and Fuzzy Comprehensive Evaluation(FCE),is employed to evaluate risk indicators.Strategies and measures to tackle the identified risks and problems,together with a follow-up management program and an integrated risk management procedure from across the whole company,are established afterwards.The paper,studies how to combine risk management and project implementation effectively by analyzing the risk management of R&D projects in M company.It shows a good understanding of COSO's latest risk management framework "Enterprise Risk Management Framework: Integrating with Strategy and Performance " and gives an operation example.It is expected that enterprises can realize the purpose of improving corporate performance by the effective implementation of risk management.