Research On The Application Of ERM In Cement Industry

As the rapid development of China's economic, the role of cement industry in the national economy is increasing. As an important basis industry for the national economy, cement industry has become an important indicator of national economic development level and overall strength. With the adjustment of national industrial policy and the development of the cement industry restructuring work, the industrial concentration are ever-increasing, firm size expanding, so that requirements of enterprise risk management are highly increasing. The purpose of this research is to construct a comprehensive risk management system in the cement industry to strengthen its risk management capabilities and enhance the management level and investment capacity of the cement industry, promoting the healthy and orderly development of the cement industry.Enterprise risk management is new ideas of risk management generated from the field of financial and project management at the same time, and have made different progress in their respective fields, representing the development trend of risk management, which adopts a systematic and global view to carry out the risk management. This paper attempts to apply enterprise risk management to the cement industry risk management. First of all, this paper analyzes the connotation of enterprise risk management, and elevates it to the height of strategic management; makes a comparison of traditional risk management and comprehensive risk management; provides a brief description of the COSO-ERM integrated framework, and discusses the new breakthroughs and new ideas of the COSO-ERM integrated framework. Secondly, this paper constructs a enterprise risk management system on the base of risk management concepts of the COSO-ERM integrated framework and the successful experience of a large number of advanced enterprises. The system includes a comprehensive organizational structure, the basic processes of risk management, methods for integrating risks and risk management information system; and proposes overall strategy to cope with risks on the base of a comprehensive analysis of the status risk and risk management in cement industry. Thirdly, this article researches on the key risk management process as well as the internal control of the operational level in cement industry, introducing risk - database, Analytic Hierarchy Process, three regional for risk identification, quantitative evaluation, selecting the countermeasures. Finally, the introduction of a case detailedly discusses the basic process of risk management and how to make use of risk management techniques, methods in the enterprise.In short, on the base of profiting from the COSO-ERM integrated framework, this paper carries a preliminary discussion about establishing Chinese risk management framework in cement industry in two aspects, both theoretical research and practical application. We propose several tentative plans of constructing theory system of risk management framework and some basicmentality about constructing risk management framework for Chinese enterprise.