The Construction Of State-owned Enterprises' Risk Recognition And Evaluation System

Risk exists as an objective thing, and how to fully manage and keep watch risk is a common issue that confronts all the enterprises. In China, the state-owned enterprises manage all the treasure of whole nation, so the steady and continuing operating correlates the growth of nation's treasure. While playing more and more important role in businesses that influence national fate and people's life, the risks of state-owned enterprises have been more valued by the government supervisors and enterprises managers. Otherwise, how to manage risks of enterprises in this increasingly completing world and how to promote faster and better development of China's economy are focuses of experts and scholars'discussion.Nowadays, the setup of world's economy integration is forming day by day. Furthermore, enterprises'operating has broken through national boundaries to the world business competition. In this situation, the fast liquidity of capital over the world makes it exposed in bigger risks. At the end of 2009, China's state-owned enterprises had caused billions of floating loss because of evolving in the financial derived products and, which made us aware of the weaknesses of competency and risk management existing in our nation's state-owned enterprises. This article, based on the summaries of internal and external research achievements on enterprises risk management and in the view of risks and their characteristics, puts up with the risk recognition and evaluation system that fits China's state-owned enterprises. By building this system, it can help make up with the absence of quantitative analysis in risk management, which makes qualitative and quantitative analysis both work at the same time. Meanwhile, it provides certain choices for the managerial when they deal with specific risks. So, they are able to take different appropriate measures to solve problems, which will keep the work cost in the low level.This article starts from the definition of state-owned enterprises, illustrates the far-reaching significance of risk recognition and evaluation, which based on their sorting and characteristics. When forming risk recognition and evaluation system, the article introduces and compares all elected methods, and then points out their strengths and weaknesses in all scenarios. It shows a direction for managerial personnel to pick up risk management methods under some circumstance.While building the system of risk recognition and evaluation, this article tightly surrounds the types of risks of state-owned enterprises. It starts with main risks companies are confronted with, and selects appropriate evaluation methods for different risks. Especially for the residual risks of evaluated risks of system, the paper asks for the second assessment. And the same time, the risks from the top managerial draw serious attention when recognizing and assessing risks. So, there is necessity that all the members of top executives think pool when making important decisions for the enterprises'operation, in case of one making final decision. Only by this way can the loss be voided because of the top executives'greedy for success. It is a long road and arduous task for state-owned enterprises to promote the ability of responding risks, strength competent advantage in the international markets.