A Study On Group Company Comprehensive Risk Assessment And Its Effect

With the rapid development of Chinese economy, more and more group companies begin to play an important role in the economic system. However, with economic growth, subordinate enterprises' number and scale of the group company also increased and expanded, and there is a tendency of larger and larger subordinate enterprises'area span and more complicated shareholding relationship. Meanwhile, it has become an important topic of discussion for group companies to choose proper managing model to their subsidiaries and branches, to undertake effective management to their operation department. This is also the common problem group companies in China facing.With the current circumstances of constantly changing business environment and the fierce market competition, the risk of enterprises facing and containing increased, and the type is also more and more complicated, which undoubtedly increased the difficulty of group risk management. The reason of the collapse of Enron, the bankruptcy of barings banks and the financial crisis events of the China Aviation Oil, Deron Group etc, is mostly due to poor risk management. Therefore, strengthening the group company's comprehensive risk management is particularly important.Firstly, with group companies in China for research object, large group companies in China for cases, group company comprehensive risk management as a starting point, this article builds group company's comprehensive risk index assessment system. Secondly, in order to make this index system to be more widely used, through expert interviews, questionnaires and literature research, secondary sorting on the index system, this article established a general comprehensive risk assessment system for listed companies. Thirdly, using this index system,25 shipbuilding-related listed companies as the research sample, it empirically tests the relationship between a comprehensive risk and group growth, performance and value, and shows that comprehensive risk and corporate growth, performance and value all are significantly negative correlation, that is to say, growth, performance, value of enterprises whose comprehensive risk is relatively small all are better than those of enterprises whose comprehensive risk is large. Finally, it proposes countermeasures of strengthening group company comprehensive risk management.This article is divided into four parts:Part one is the first two chapters. The part explicitly elaborates the article' background and meaning.Combining domestic and foreign literature, the relationship between the comprehensive risk and corporate growth, performance and value are summarized and analyzed, laying a theoretical basis for follow-up research.Part two is the third and the fourth chapter. According to comprehensive risk management theory, combined with the characteristics of group companies in China, the part elaborates group company comprehensive risk evaluation index' selection method in theory.Then, it builds a risk evaluation index system, and constructs the group company comprehensive risk management system model.Part three is the fifth chapter.By shipbuilding-related listed companies as the research sample, the part constructs the general risk evaluation model of listed group companies and empirically studies the respective relationship between the comprehensive risk and corporate growth, performance and value. Meanwhile, in view of the above conclusions, it proposes countermeasures of strengthening group company comprehensive risk management.Part four is the sixth chapter. The part summaries research conclusions, shows the main research innovations, and provides reference for risk management of future group companies.The innovation performance in the article is as follows:(1) The article chooses to use combination weighting method based on the geometric average method, builds group company's comprehensive risk index assessment system and model. Aiming at the existing problems in the group company's comprehensive risk assessment, such as index selection, determining weighting, the article takes questionnaires, expert interviews and grading methods, screens comprehensive risk assessment indexes, and measures evaluation indexes. Then, the article combines two kinds of the G1 method and hierarchical analysis weighting method, and uses geometry average method to combined weighting. The method makes the distribution of weight be more scientific and reasonable, and avoids causing deviation of the single use of some kind of weighting method.(2) The article chooses listed group companies as the research sample, and empirically studies the influence of comprehensive risk on the corporate growth, performance and value. By shipbuilding-related listed group companies in 2007-2009 as the research sample, and on the basis of analyzing the cases, the article takes the Delphi method to screen comprehensive risk indexes again, chooses 19 general, available indexes from all 67 indexes. With the use of the chosen indexes, the article evaluates comprehensive risk degree of the shipbuilding-related sample companies, and the article empirically studies the influence of comprehensive risk on the corporate growth, performance and value. The results shows that comprehensive risk and listed companies' growth, performance and value all are significantly negative correlation. (3) For the conflict which the group and affiliated companies have in the human, right, substance' control aspects, this article puts forward the management and control model of group company comprehensive risk management. For the conflict which the group and affiliated companies have in the human, right, substance' control aspects, this model puts forward a set of the index system and management and control process of comprehensive risk management, which include ensuring group strategic system, clearing strategic target, strengthening the human capital investment management, stabilizing supply chain management; designing group fund control model, namely the idea of group company for centralized fund management, and affiliated companies in flexible use within the right; designing a set of index system and process of group performance management and control with the use of Balanced Score Card (BSC) and Economic Value Added (EVA) thoughts,and so on.