Enterprise Risk Management Research Based On BSC

In 2004, COSO "Enterprise Risk Management - Integrated Framework" (ERM) was raised which offered enterprises guidance of risk management theory and method. And to some distance, it met the risk management requirement of enterprises managers and stakeholders. Currently, research about ERM abroad mainly focuses on how the ERM works effectively in an enterprise. Many researchers hold the idea that it can promote the risk management working better to balance enterprise performance and risk and make both of them serve enterprise value. Few articles research how to executive risk management through the balance Scorecard preliminarily. It has been found that there is no consensus on the case. Based on the research state, the paper explores enterprise risk management based on the balance Scorecard further through reference of previous results and experience. Those are research on feasibility of the construction of risk balance Scorecard and preliminary framework.This thesis describes the theories about risk management and balance Scorecard, and also the core function of them. Many similarities between the two ones are found which make it possible to construct a framework of risk management balance Scorecard based on the theory of balance Scorecard that supplies us with thoughts and the way to executive the risk management practice. The balance Scorecard framework can solve practice problems in the process of risk management in Chain. It is found in the paper that risk management and performance management are highly related which makes it work better to manage the enterprise with the similar management framework.The author borrows the way that designs balance Scorecard to design the risk balance Scorecard framework, describes details from every perspective, and demonstrates the connotation and related factors of the risk balance Scorecard. The author also designs the executive process to the risk balance Scorecard. And finally, the whole framework of risk balance Scorecard is constructed and advantages of the whole framework are shown.