Design Of Financial Risk Management System Of H Company Based On ERM Framework

As a basic industry in production and life,instrument industry is particularly important for China’s social development.Its application fields are extensive,including industry,agriculture,transportation,science and technology,environmental protection,national defense,etc.,playing a guiding role in the construction and operation of all walks of life.However,in recent years,with the deepening of China’s market economic reform and the rapid development of the capital market,and under the strong support of national policies,instrument enterprises rapidly rise,bringing about intense market competition.The change of internal and external environment makes the risk that enterprise faces aggravate,the management problem is increasingly outstanding.Strengthening risk management and enhancing core competitiveness are urgent problems for every enterprise.Enterprises should pay more attention to financial risk management,for it’s the core of enterprise management and is the premise and basis for the long-term sustainable development of enterprises.As the most authoritative framework of risk management in the world,ERM framework is of great practical significance to the research of financial risk management by combining it with financial risk management.Based on ERM framework,this thesis,by identifying and assessing the financial risk of H Company,analyzes the specific risks and their effects on H Company.Through study and analysis of the current financial risk management methods of H Company,it points out the existing problems and puts forward the principles and ideas of constructing a financial risk management system for H Company.The financial risk management system for H Company is designed,which is based on the following factors: Internal Environment,Event Identification,Risk Assessment,Risk Response,Control Activities,Information and Communication and Monitoring.The new financial risk management system is applied in practice to test its effectiveness and assess its deficiencies,and consequently strategies of consistent improvement are put forward.The research results of this paper have certain practical significance for the financial risk management of H company.At the same time,this paper on the financial risk assessment system and financial risk management system construction in the instrumentation industry is innovative,expected to provide reference for the industry to establish a more complete risk management system.