Identification And Prevention Of Major Risks In JC Company

Since1990s, with the development of globalization and increase of uncertainty in external environment changing, many enterprises have paid more attention to risk and risk management. Therefore, new theories such as Comprehensive Risk Management (CRM) have been put forward and carried into practice. However, in our country, due to its management system and mechanism etc., the development and application of enterprise risk management (ERM) theory are relatively lagging behind and risk management is rather weak. Especially in2004, China Aviation Oil (Singapore) Co., Ltd, as the only overseas company belonging to China Aviation Oil Group, suffered a total loss of$550million in oil derivatives trade, which was truly thought provoking. So we come to realize that, in the field of risk management, there is still a large gap between the large companies in developed countries and those enterprises in China which are gradually entering into the international market. It is very important for enterprises to grasp business opportunities but control risks and eliminate risks meanwhile.As a person in charge of risk management department in JC company, I have intensively studied the CRM theory and widely takes the practical CRM experiences as references. Based on the principle of "Practicality and Efficiency", I will Discusses how to identify JC factory face major risks and make a specific response to improve the enterprise management、operational efficiency and effectiveness, which could also have certain reference value for other enterprises.Firstly, this paper states the background and significance for carrying out CRM, introduces the research status and achievements of CRM at home and abroad, and points out the research methods, idea, framework arrangement as well as its innovation points.Secondly, this paper describes the Enterprise Total Risk Management-Integrated Framework of USA COSO in detail, analyzes the relationship between total risk management and internal control. Then the Central Enterprise Total Risk Management Guidelines is interpreted from two aspects of CRM theory, i.e. connotation and basic framework.Thirdly, this paper introduces the company history, analyses the risk assessment methods and procedures, summarizes the conclusion, determine the risk of market competition, product quality risk, accounts receivable and inventory risk for JC company factory major risks.Fourthly, this paper states the risk causes analysis of JC company, from the internal management and external market environment multi-angle analyses the reasons for the risk of market competition, product quality, accounts receivable and inventory risk.Fifthly, this paper shows the risk response ideas and specific measures based on risk formation reasons, one by one put forward ideas and specific measures of market competition risk, quality risk, the risk of accounts receivable and inventory.Finally, in the ending part of this paper, it summarizes the research process and points out limitations of this paper and the future direction of research and practice.