Strategic-oriented Evaluation System Of Financial Risk Governance Of Conglomerate

Enterprises develop and expanse by merger & acquisition, and this is one of the most effective ways to enhance the core competitiveness.In China, the public ownership remains dominant in market economic system, and being the main sector of economic forms. But as public ownership has its own features, the financial governance of state-owned enterprises group still has more problems to be settled compared with enterprises under private ownership. And these existing problems limit the financial governance level, resulting in high financial risk and low capital utilization.Paper based on owner’s financial governance and existing research results mainly studies on the financial governance of state-owned enterprises group, and divides main influence factors into three parts, namely decision-making influence factors, supervision influence factors, and process control influence factors. By settling multiple indicators and then evaluating them with marks, I try to build up financial risks evaluation system of state-owned enterprises group.At last, I try to apply financial risks evaluation system of state-owned enterprises group to an existing state-owned enterprises group named CNM Cop. CNM has three types of subsidiaries:machinery R&D, engineering contract, and trade services. By applying financial risks evaluation system to evaluate the financial risks of CNM Cop. The outcomes of three types of subsidiaries are 0.88,0.68 and 0.61. Then based on the outcomes, paper gives some advices to improve the existing financial governance system.