Research On The Construction Of Risk Management System Of Company H Based On ERM Framework

As risk management becomes increasingly important in business operation,Enterprise Risk Management(ERM)increasingly becomes a significant tool in the process of enterprise management.In order to prevent the adverse effects of risk events on companies,many international enterprises attach great importance to overall risk management work.Governments and industry supervision organizations in various countries propose stricter requirements on improvements of business risk management and control capabilities in their own countries as well as establishment and implementation of system.Under such an international background,in order to ensure the sound,stable and sustainable development of enterprises in China,it becomes increasingly urgent to perfect and implement various tasks of total risk management.Researches on risk management in China start relatively late.Scholars mainly focus on investigating banks,insurance,and financial industry risk management problems,paying insufficient attention to heating power risk management problems.Heating power companies occupy important positions in national economic development in China and concern national economy and the people's livelihood.More attention should be paid to the construction of risk management.However,some heating power enterprises can not formulate comprehensive risk management systems on integral levels of companies due to relatively weak risk awareness,while these companies carry on operation and management.At last,business risks and even business failures are caused.In this connection,it is of great significance for heating power companies to strengthen risk management and perfect risk management system.This paper takes a heating power enterprise called H Company as the research object and combines operational characteristics of heating power industry in China on the basis of ERM framework.This paper analyzes and summarizes the main problems of H Company in risk management and internal control through analyzing the main risks and current situation of risk management of H Company.Then,this paper starts from the industrial characteristics and practical situation of H Company and takes ERM framework as the theoretical basis,constructing the comprehensive risk management system of H Company.The comprehensive risk management system which accords with the features of heating power enterprise of H Company is built from risk management target subsystem,risk management and control subsystem,environmental information support subsystem as well as supervision and feedback subsystem.On this basis,this paper proposes and applies the implementation approach of comprehensive risk management system of H Company,in order to help H Company enhance overall risk management capability and promote the healthy,stable and sustainable development of the company.