Abstract
With a number of major companies’ bankruptcies and decline since 1980’s, people started to pay more attention to risk management. The developed countries have constructed a set of systems of risk management, however, in China, the researches about risk management are scarce. The state-owned enterprises in China are wholly or partly controlled by local or central governments, and they play an important role in the economic development in China. Although the national enterprises’ competitiveness has been improved too much after the reform of state-owned enterprises, however, because of their special situation, there still is a big gap between them and the developed countries’ companies on risk management. Risk means not only loss but also opportunity, a good risk management system of a company can prevent the loss even convert risk into profit. In awww.51lunwen.org changing environment, risk is getting more complicated, so how to control these risks successfully seems critical. This article will try to provide a clear picture of risk management of state-owned enterprises in China.
This dissertation will discuss the difference of risk management in China and developed countries, especially focus on the aspect of regulation. Then the author will introduce the implementation of risk management in state-owned enterprises in China, furthermore, it will give some suggestions about how to establish a risk management system. Finally, a case study of China Aviation Oil (Singapore) Company will be done to provide the Chinese state-owned enterprises lessons and advice on risk management
Table of Contents
ACKNOWLEDGMENTS I
TABLE OF CONTENTS II
LIST OF FIGURES IV
LIST OF TABLES V
ABSTRACT V
CHAPTER 1 INTRODUCTION 1
1.1 INTRODUCTION 1
1.2 OUTLINE OF THIS DISSERTATION 2
1.3 METHODOLOGY 2
CHAPTER 2 REVIEW OF THE LITERATURE 4
2.1 INTRODUCTION 4
2.2 LITERATURE REVIEW 4
2.3 CONCLUDING COMMENTS 10
CHAPTER 3 THE THEORY OF RISK MANAGEMENT 11
3.1 THE RESEARCHES OF RISK MANAGEMENT CONTAINS THREE STAGES 11
3.2 RISK MANAGEMENT AND INTERNAL CONTROL 11
3.3 THE PROCESS AND TECHNIQUES OF RISK MANAGEMENT 13
3.3.1 Risk Identification 13
3.3.2 Risk Assessment 17
3.3.3 Risk Treatment 19
3.4 CONCLUDING COMMENTS 24
CHAPTER 4 THE DEVELOPMENT OF RISK MANAGEMENT IN CHINA AND DEVELOPED COUNTRIES 25
4.1 THE REGULATIONS OF RISK MANAGEMENT IN USA 25
4.2 THE REGULATIONS OF RISK MANAGEMENT IN UK 30
4.3 THE REGULATIONS OF RISK www.51lunwen.orgMANAGEMENT IN CHINA 35
4.4 COMPARISON OF REGULATIONS OF RISK MANAGEMENT IN CHINA AND DEVELOPED COUNTRIES’ ENTERPRISES 38
4.5 CONCLUDING COMMENTS 39
CHAPTER 5 THE RISK MANAGEMENT OF STATE-OWNED ENTERPRISES IN CHINA 41
5.1 INTRODUCTION 41
5.2 THE GENERAL POSITION OF IMPLEMENTATION OF RISK MANAGEMENT IN STATE-OWNED ENTERPRISES IN CHINA 41
5.3 THE PRIMARY RISKS ENCOUNTERED IN STATE-OWNED ENTERPRISES IN CHINA 43
5.4 CONCLUDING COMMENTS 46
CHAPTER 6 CASE STUDY 47
6.1 THE REVIEW OF THIS CASE 47
6.2 ANALYZING THE CASE WITH ERM-INTEGRATED FRAMEWORK 48
6.2.1 The Analysis of Components 48
6.2.2 The Analysis of Objectives 54
6.3 CONCLUDING COMMENTS 58
CHAPTER 7 RECOMMENDATIONS ABOUT HOW TO ENHANCING RISK MANAGEMENT IN CHINA 59
7.1 ESTABLISHING FORMAL CORPORATE GOVERNANCE STRUCTURE 59
7.2 ESTABLISHING STRICT CAPITAL DISCIPLINE 59
7.3 OBSERVING MARKET DISCIPLINE 60
7.4 THE LEADERS OF THE ENTERPRISES MUST DISCIPLINE THEMSELVES 61
7.5 CONCLUDING COMMENTS 62
CHAPTER 8 CONCLUSIONS AND FUTURE WORK 63
REFERENCES 64
List of Figures
Figure3-1: The five stages of internal control……………………………………12
Figure3-2: A risk tree to describe the risk of developing a new product………13
Figure3-3: A manufacturing flow chart of a manufacturing enterprise…………14
Figure3-4: Risk assessment coordinate system…………………………………17
Figure4-1: The model of Internal Control-Integrated Framework………………25
Figure4-2: The Cube of Risk Management-Integrated Framework……………28
References
1. AiHua Li and Peng Zhang, The perspectives and thinking on the development of internal control in UK[J],www.51lunwen.org Management, 138-140, 2007.
2. Ali
