Research On Operational Risk Management Of German D Testing Company Shanghai Branch

The manufacturing industry’s magnitude and excellence are escalating swiftly,as China’s all-encompassing national might is augmented,and the import and export of foreign commerce is ceaselessly increasing.China’s demand for third-party testing and certification services also surges rapidly.Testing and certification is an important guarantee for the quality and safety of food,clothing,engineering,etc.The Shanghai Branch of Germany D Testing Company,a major player in the Chinese testing sector,has seen a drop in income due to the unforeseen coronavirus outbreak and the worldwide economic climate,despite the market’s wide-reaching potential and immense growth.This paper conducted a comprehensive study on the risks in the current operation of the Shanghai Branch of D Testing Company,hoping to reduce the operating risks and help the company out of the predicament of declining revenue by closely combining with the actual situation of D company.COSO-ERM theory and ISO 31000 comprehensive risk management guidelines are the guiding forces of this research,which seeks to recognize,evaluate,and manage the risks of D Test’s operations.Initially,operating leverage,customary occurrences and interview techniques are employed to recognize the enterprise’s operational risks,mainly manifested in external legal risks,market risks and political risks,internal production and management risks,and human resources risks.Forming a three-level risk list,after elucidating the features and efficacy of various risks,necessitates an evaluation of the external and internal environment of the enterprise in order to ascertain the causes of risk formation.To accurately gauge the level of each risk point,risk management must be based on evaluation list,14 operational risks are scored from two dimensions of severity and occurrence probability by means of questionnaire survey,which is drawn in the risk matrix for visualization,and all operational risks are divided into different areas of high,middle and low.Finally,according to the different levels of risk,different coping strategies such as avoidance,transfer and acceptance are adopted according to the low level of high school risk,and optimization countermeasures are proposed for the construction of the comprehensive control system of business risk.On view of the actual situation of Shanghai Branch,this paper puts forward some measures to solve the current operational risks,including improving the remote detection process to avoid quality and safety risks,updating the certification certificate to cope with the changes of the market,increasing recruitment efforts and reasonable rewards and penalties to retain technical talents.Based on the risk management theory,this study conducted a relatively comprehensive study on the operating risks of the Shanghai branch of D Company,an old German company in the detection and certification industry,hoping to have a certain guiding effect on the risk management of the company and provide reference for the related work in the industry.