Research On The Framework Construction Of Comprehensive Risk Management System Of X Group Company

"What is absolutely certain about today’s world is uncertainty" is a point of view that is shared by more and more people as both internal and external environment is getting complicated and uncertain factors that will exercise crucial influences on the achievement of a company’s business objectives are increasing in number. In this context, companies are all facing a new challenge of how to improve its capability of risk management. SASAC issued in2006"Guidelines on Overall Risk Management for State-Owned Enterprises under Supervision and Administration of Central Government", which urges an enterprise to establish a dynamic overall risk management platform that is capable of self-operating, self-complementing and self-improving, and which, in the meantime, is also of great importance and significance in that it can help an enterprise to avoid major risks, achieve laws-and standards-compliant operation and improve its level of management.This dissertation takes as its theoretical base "COSO Internal Control Framework" and SASAC’s "Guidelines on Overall Risk Management for State-Owned Enterprises under Supervision and Administration of Central Government", takes into account the national policies and regulations, and makes theoretical analysis of the risk management theories, different risk management systems and frameworks as well as the definition and characteristics of the overall risk management in state-owned enterprises. Practically, it begins with an analysis of the risk management as well as the establishment and operation of the internal control system within X Corporation by adopting the advanced approaches prevailing in foreign countries to the building and establishment of a risk management system, with reference to the practical experience of domestic state-owned enterprises in building a risk management system, in order to have a close connection between theory and practice. After years’ effort to improve the management, X Corporation has already had a sound internal control. So no study or building is made on the control environment, information, communication and supervision within and for an internal control system because it would be a repeat otherwise. In case of the overall risk management system framework in X Corporation, the focus of the study is on the risk management process, the implementation at and of each link making up such a process as well as the application of tool templates. As implied by the principle of "being consistent between objectives, risks and control", works are first done to accurately portray the business process, then carry out interviews and research with the middle, senior and top management in order to have a full knowledge of the risks facing the company, especially the major and serious ones; Next, assemble and make an analysis of the collected data and materials in order to identify risks, find out their expressions and causes in X Corporation, and build up a library of risk events; On this basis, a number of evaluation indexes are constructed in order to have an objective evaluation of the risks facing the company and form the Table of Prioritized Risks; The conclusions or results from the risk evaluation will then act as a basis on which risk control and response measures are worked out for the risks at different levels. Finally, the effectiveness of the risk control is tested and supervised in order to form or create a closed-loop risk management system framework.This dissertation makes clear the elements and scope regarding the building of an overall risk management system, provides the steps and methodology for building and establishing such overall risk management system in non-ferrous metal enterprises, and offers a relatively complete and effective overall risk management system framework that covers and addresses the production, operation, management and other aspects of X Corporation, that can help X Corporation achieve its strategic, operational, reporting and compliance goals, that can help X Corporation standardize its management and thereby prevent and avoid risks, and that can help X Corporation facilitate and achieve rapid and healthy growth and development.