Examination of Chinese Enterprise Risk Management from the Perspective of the Integrated Management of Profit Opportunity and Risk
This chapter examines the structure and problems of Chinese enterprise risk management in light of COLC model. For this purpose, the chapter clarifies the peculiar features of the enterprise risk management under strong governmental safeguard and its problems in shifting process of governmental strategy from ‘absorbing foreign power’ to ‘going global’. The chapter understands the limitation of applying COLC model to this risk management through this examination. This chapter first enquires into a close relation between enterprise risk management and governmental administration system and some problems of the government-oriented risk management at the stage of ‘going global’ strategy. Then the chapter looks into the actual situations of risk management practices in finance company and supply chain under leadership of the group company. Last, the contemporary meaning of Chinese enterprise risk management is grasped in light of COLC model and from the viewpoint of uncertainty control.
KeywordsInternal control Pyramid type of risk management ‘Absorbing foreign power’ ‘Going global’ Political risks
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