The Operational Risk Management Of XD Building Materials Company

In the modern enterprise, how to identify, analyze and cope with various risks in the process of enterprise operation is an important problem for the managers. There has been significant growth in the number of Enterprise Risk Management implementations. This paper is a case study about the operational risk management of XD Building Materials Company based on a mixed methods approach including Interpretative Structural Modeling Method(ISM) , Fuzzy-synthetic and Analytic Hierarchy Process (FAHP).This paper includes two parts, case and analysis. The first part introduces the basic of XD Building Materials Company, management environment and the current operational risk management system. The second part analyses the problems existing in the current system,expounds the goals and principles of operational risk management, puts forward the necessity and feasibility of implementing holistic operational risk management. Additionally, the paper puts forward the risk management framework and the approach to evaluate risk, identify the structure and the conduction path of the risk, assign the weights of risk factors, and calculate the partial or holistic risk index by utilizing ISM-FAHP. Finally, the paper puts forward the measures to ensure the implementation of the holistic operational risk management.