企业风险管理中英文对照外文翻译文献
外文翻译外文文献英文文献国际建设工程风险分析
外文文献:This analysis used a case study methodology to analyze the issues surrounding the partial collapse of the roof of a building housing the headquarters of the Standards Association of Zimbabwe (SAZ). In particular, it examined the prior roles played by the team of construction professionals. The analysis revealed that the SAZ’s traditional construction project was generally characterized by high risk. There was a clear indication of the failure of a contractor and architects in preventing and/or mitigating potential construction problems as alleged by the plaintiff. It was reasonable to conclude that between them the defects should have been detected earlier and rectified in good time before the partial roof failure. It appeared justified for the plaintiff to have brought a negligence claim against both the contractor and the architects. The risk analysis facilitated, through its multi-dimensional approach to a critical examination of a construction problem, the identification of an effective risk management strategy for future construction prject and riskThe structural design of the reinforced concrete elements was done by consulting engineers Knight Piesold (KP). Quantity surveying services were provided by Hawkins, Leshnick & Bath (HLB). The contract was awarded to Central African Building Corporation (CABCO) who was also responsible for the provision of a specialist roof structure using patented “gang nail” roof trusses. The building construction proceeded to completion and was handed over to the owners on Sept. 12, 1991. The SAZ took effective occupation of the headquarters building without a certificate of occupation. Also, the defects liability period was only three months .The roof structure was in place 10 years At first the SAZ decided to go to arbitration, but this failed to yield an immediate solution. The SAZ then decided toproceed to litigate in court and to bring a negligence claim against CABCO. The preparation for arbitration was reused for litigation. The SAZ’s quantified losses stood at approximately $ 6 million in Zimbabwe dollars (US $1.2m) .After all parties had examined the facts and evidence before them, it became clear that there was a great probability that the courts might rule that both the architects and the contractor were lia ble. It was at this stage that the defendants’ lawyers requested that the matter be settled out of court. The plaintiff agreed to this suxamined the prior roles played by the project management function and construction professionals in preventing/mitigating potential construction problems. It further assessed the extent to which the employer/client and parties to a construction contract are able to recover damages under that contract. The main objective of this critical analysis was to identify an effective risk management strategy for future construction projects. The importance of this study is its multidimensional examination approach.Experience sugge be misleading. All construction projects are prototypes to some extent and imply change. Change in the construction industry itself suggests that past experience is unlikely to be sufficient on its own. A structured approach is required. Such a structure can not and must not replace the experience and expertise of the participant. Rather, it brings additional benefits that assist to clarify objectives, identify the nature of the uncertainties, introduces effective communication systems, improves decision-making, introduces effective risk control measures, protects the project objectives and provides knowledge of the risk history .Construction professionals need to know how to balance the contingencies of risk with their specific contractual, financial, operational and organizational requirements. Many construction professionals look at risks in dividually with a myopic lens and donot realize the potential impact that other associated risks may have on their business operations. Using a holistic risk management approach will enable a firm to identify all of the organization’s business risks. This will increas e the probability of risk mitigation, with the ultimate goal of total risk elimination .Recommended key construction and risk management strategies for future construction projects have been considered and their explanation follows. J.W. Hinchey stated th at there is and can be no ‘best practice’ standard for risk allocation on a high-profile project or for that matter, any project. He said, instead, successful risk management is a mind-set and a process. According to Hinchey, the ideal mind-set is for the parties and their representatives to, first, be intentional about identifying project risks and then to proceed to develop a systematic and comprehensive process for avoiding, mitigat and its location. This is said to be necessary not only to allow alternative responses to be explored. But also to ensure that the right questions are asked and the major risks identified. Heads of sources of risk are said to be a convenient way of providing a structure for identifying risks to completion of a participant’s pa rt of the project. Effective risk management is said to require a multi-disciplinary approach. Inevitably risk management requires examination of engineering, legal and insurance related solutions .It is stated that the use of analytical techniques based on a statistical approach could be of enormous use in decision making . Many of these techniques are said to be relevant to estimation of the consequences of risk events, and not how allocation of risk is to be achieved. In addition, at the present stage of the development of risk management, Atkinson states that it must be recognized that major decisions will be made that can not be based solely on mathematical analysis. The complexity ofconstruction projects means that the project definition in terms of both physical form and organizational structure will be based on consideration of only a relatively small number of risks . This is said to then allow a general structured approach that can be applied to any construction project to increase the awareness of participants .The new, simplified Construction Design and Management Regulations (CDM Regulations) which came in to f 1996, into a single regulatory package.The new CDM regulations offer an opportunity for a step change in health and safety performance and are used to reemphasize the health, safety and broader business benefits of a well-managed and co-ordinated approach to the management of health and safety in construction. I believe that the development of these skills is imperative to provide the client with the most effective services available, delivering the best value project possible.Construction Management at Risk (CM at Risk), similar to established private sector methods of construction contracting, is gaining popularity in the public sector. It is a process that allows a client to select a construction manager (CM) based on qualifications; make the CM a member of a collaborative project team; centralize responsibility for construction under a single contract; obtain a bonded guaranteed maximum price; produce a more manageable, predictable project; save time and money; and reduce risk for the client, the architect and the CM.CM at Risk, a more professional approach to construction, is taking its place along with design-build, bridging and the more traditional process of design-bid-build as an established method of project delivery.The AE can review to get the projec. Competition in the community is more equitable: all subcontractors have a fair shot at the work .A contingency within the GMP covers unexpected but justifiable costs, and a contingency above the GMP allows for client changes. As long as the subcontractors are within the GMP they are reimbursed to the CM, so the CM represents the client in negotiating inevitable changes with subcontractors.There can be similar problems where each party in a project is separately insured. For this reason a move towards project insurance is recommended. The traditional approach reinforces adversarial attitudes, and even provides incentives for people to overlook or conceal risks in an attempt to avoid or transfer responsibility.A contingency within the GMP covers unexpected but justifiable costs, and a contingency above the GMP allows for client changes. As long as the subcontractors are within the GMP they are reimbursed to the CM, so the CM represents the client in negotiating inevitable changes with subcontractors.There can be similar problems where each party in a project is separately insured. For this reason a move towards project insurance is recommended. The traditional approach reinforces adversarial attitudes, and even provides incentives for people to overlook or conceal risks in an attempt to avoid or transfer responsibility.It was reasonable to assume that between them the defects should have been detected earlier and rectified in good time before the partial roof failure. It did appear justified for the plaintiff to have brought a negligence claim against both the contractor and the architects.In many projects clients do not understand the importance of their role in facilitating cooperation and coordination; the desi recompense. They do not want surprises, and are more likely to engage in litigation when things go wrong.中文译文:国际建设工程风险分析索赔看来是合乎情理的。
财务风险管理外文翻译英文文献
财务风险管理中英文资料翻译Financial Risk ManagementAlthough financial risk has increased significantly in recent years,risk and risk management are not contemporary issues. The resultof increasingly global markets is that risk may originate with eventsthousands of miles away that have nothing to do with the domesticmarket。
Information is available instantaneously,which means thatchange, and subsequent market reactions, occur very quickly.The economic climate and markets can be affected very quickly bychanges in exchange rates,interest rates, and commodity prices. Counterpartiescan rapidly become problematic. As a result,it is important toensure financial risks are identified and managed appropriately。
Preparationis a key component of risk management。
What Is Risk?Risk provides the basis for opportunity. The terms risk and exposure havesubtle differences in their meaning. Risk refers to the probability of loss,while exposure is the possibility of loss, although they are often usedinterchangeably。
商业银行信贷风险管理外文文献翻译中文3000多字
商业银行信贷风险管理外文文献翻译中文3000多字Credit risk management is a XXX business。
financing ns。
payment and settlement。
and other XXX。
credit XXX risk factor for commercial banks。
XXX such as life risk and uncertainty.Effective credit risk management is essential for commercial banks to minimize the impact of credit losses。
This involves identifying and assessing potential risks。
XXX strategies。
XXX。
By doing so。
commercial banks XXX the potential for credit losses.One of the key components of credit risk management iscredit analysis。
This involves evaluating the orthiness of borrowers to determine the likelihood of default。
Credit analysis XXX's financial history。
credit score。
collateral。
XXX credit analysis。
commercial banks can make informed lending ns and minimize the risk of default.Another important aspect of credit risk management is credit XXX can also help commercial banks XXX.In n。
中英文外文文献翻译中小企业财务风险管理研究
本科毕业设计(论文)中英文对照翻译(此文档为word格式,下载后您可任意修改编辑!)作者:Bernard G期刊:International Journal of Information Business and Management 第5卷,第3期,pp:41-51.原文The research of financial Risk Management in SMESBernard GINTRUDUCTIONSmall and medium sized enterprises (SME) differ from large corporations among other aspects first of all in their size. Theirimportance in the economy however is large . SME sector of India is considered as the backbone of economy contributing to 45% of the industrial output, 40% of India’s exports, employing 60 million people, create 1.3 million jobs every year and produce more than 8000 quality products for the Indian and international markets. With approximately 30 million SMEs in India, 12 million people expected to join the workforce in next 3 years and the sector growing at a rate of 8% per year, Government of India is taking different measures so as to increase their competitiveness in the international market. There are several factors that have contributed towards the growth of Indian SMEs. Few of these include; funding of SMEs by local and foreign investors, the new technology that is used in the market is assisting SMEs add considerable value to their business, various trade directories and trade portals help facilitate trade between buyer and supplier and thus reducing the barrier to trade With this huge potential, backed up by strong government support; Indian SMEs continue to post their growth stories. Despite of this strong growth, there is huge potential amongst Indian SMEs that still remains untapped. Once this untapped potential becomes the source for growth of these units, there would be no stopping to India posting a GDP higher than that of US and China and becoming the world’s economic powerhouse. RESEARCH QUESTIONRisk and economic activity are inseparable. Every business decisionand entrepreneurial act is connected with risk. This applies also to business of small and medium sized enterprises as they are also facing several and often the same risks as bigger companies. In a real business environment with market imperfections they need to manage those risks in order to secure their business continuity and add additional value by avoiding or reducing transaction costs and cost of financial distress or bankruptcy. However, risk management is a challenge for most SME. In contrast to larger companies they often lack the necessary resources, with regard to manpower, databases and specialty of knowledge to perform a standardized and structured risk management. The result is that many smaller companies do not perform sufficient analysis to identify their risk. This aspect is exacerbated due to a lack in literature about methods for risk management in SME, as stated by Henschel: The two challenging aspects with regard to risk management in SME are therefore: 1. SME differ from large corporations in many characteristics 2. The existing research lacks a focus on risk management in SME The following research question will be central to this work: 1.how can SME manage their internal financial risk? 2.Which aspects, based on their characteristics, have to be taken into account for this? 3.Which mean fulfils the requirements and can be applied to SME? LITERA TURE REVIEWIn contrast to larger corporations, in SME one of the owners is oftenpart of the management team. His intuition and experience are important for managing the company. Therefore, in small companies, the (owner-) manager is often responsible for many different tasks and important decisions. Most SME do not have the necessary resources to employ specialists on every position in the company. They focus on their core business and have generalists for the administrative functions. Behr and Guttler find that SME on average have equity ratios lower than 20%. The different characteristics of management, position on procurement and capital markets and the legal framework need to be taken into account when applying management instruments like risk management. Therefore the risk management techniques of larger corporations cannot easily be applied to SME. In practice it can therefore be observed that although SME are not facing less risks and uncertainties than large companies, their risk management differs from the practices in larger companies. The latter have the resources to employ a risk manager and a professional, structured and standardized risk management system. In contrast to that, risk management in SME differs in the degree of implementation and the techniques applied. Jonen & Simgen-Weber With regard to firm size and the use of risk management. Beyer, Hachmeister & Lampenius observe in a study from 2010 that increasing firm size among SME enhances the use of risk management. This observation matches with the opinion of nearly 10% of SME, which are of the opinion, that risk management is onlyreasonable in larger corporations. Beyer, Hachmeister & Lampenius find that most of the surveyed SME identify risks with help of statistics, checklists, creativity and scenario analyses. reveals similar findings and state that most companies rely on key figure systems for identifying and evaluating the urgency of business risks. That small firms face higher costs of hedging than larger corporations. This fact is reducing the benefits from hedging and therefore he advises to evaluate the usage of hedging for each firm individually. The lacking expertise to decide about hedges in SME is also identified by Eckbo, According to his findings, smaller companies often lack the understanding and management capacities needed to use those instruments. METHODOLOGY USE OF FINANCIAL ANAL YSIS IN SME RISK MANAGEMENT How financial analysis can be used in SME risk management? Development of financial risk overview for SME The following sections show the development of the financial risk overview. After presenting the framework, the different ratios will be discussed to finally present a selection of suitable ratios and choose appropriate comparison data. Framework for financial risk overviewThe idea is to use a set of ratios in an overview as the basis for the financial risk management.This provides even more information than the analysis of historicaldata and allows reacting fast on critical developments and managing the identified risks. However not only the internal data can be used for the risk management. In addition to that also the information available in the papers can be used. Some of them state average values for the defaulted or bankrupt companies one year prior bankruptcy -and few papers also for a longer time horizon. Those values can be used as a comparison value to evaluate the risk situation of the company. For this an appropriate set of ratios has to be chosen. The ratios, which will be included in the overview and analysis sheet, should fulfill two main requirements. First of all they should match the main financial risks of the company in order to deliver significant information and not miss an important risk factor. Secondly the ratios need to be relevant in two different ways. On the one hand they should be applicable independently of other ratios. This means that they also deliver useful information when not used in a regression, as it is applied in many of the papers. On the other hand to be appropriate to use them, the ratios need to show a different development for healthy companies than for those under financial distress. The difference between the values of the two groups should be large enough to see into which the observed company belongs. Evaluation of ratios for financial risk overview When choosing ratios from the different categories, it needs to be evaluated which ones are the most appropriate ones. For this some comparison values are needed inorder to see whether the ratios show different values and developments for the two groups of companies. The most convenient source for the comparison values are the research papers as their values are based on large samples of annual reports and by providing average values outweigh outliers in the data. Altman shows a table with the values for 8 different ratios for the five years prior bankruptcy of which he uses 5, while Porporato & Sandin use 13 ratios in their model and Ohlson bases his evaluation on 9 figures and ratios [10]. Khong, Ong & Y ap and Cerovac & Ivicic also show the difference in ratios between the two groups, however only directly before bankruptcy and not as a development over time [9]. Therefore this information is not as valuable as the others ([4][15]).In summary, the main internal financial risks in a SME should be covered by financial structure, liquidity and profitability ratios, which are the main categories of ratios applied in the research papers.Financial structureA ratio used in many of the papers is the total debt to total assets ratio, analyzing the financial structure of the company. Next to the papers of Altman, Ohlson and Porporato & Sandin also Khong, Ong & Y ap and Cerovac & Ivicic show comparison values for this ratio. Those demonstrate a huge difference in size between the bankrupt andnon-bankrupt groups.Therefore the information of total debt/total assets is more reliable and should rather be used for the overview. The other ratios analyzing the financial structure are only used in one of the papers and except for one the reference data only covers the last year before bankruptcy. Therefore a time trend cannot be detected and their relevance cannot be approved.译文中小企业财务风险管理研究博纳德引言除了其他方面,中小型企业(SME)与大型企业的不同之处首先在于他们的规模不同,但是,他们在国民经济中同样具有重要的作用。
危机管理一个企业全面管理的方法 英文文献及翻译 精品
Managing Risk:An Enterprise-wide ApproachBarton·ThomasL1、Shenkir·WilliamG2、Walker·PaulL3Twenty-first century businesses worldwide operate in an environment where f orces such as globalization,technology,the internet,deregulation,restructurings and changing consummer expectations——are creating much uncertainty and prodigious risks. Consider, for example, that no force is having as great an impact on business today as the Internet. And as the internet evolves, companies in all industries are rethinking the basics: business models, core strategies and target customer bases.These new developments create new issues related to risk and risk management. Managing risk on an integrated and enterprise-wide basis is a vital issue confronting executives, with the CFO a key decisionmaker in crafting the company strategy, "I think the point to risk management is not to try and operate your business in a risk-free environment, it's to tip the scale to your advantage. So it becomes strategic rather than just defensive," observed Peter Cox, chief financial officer of United Grain Growers Ltd. (of Canada). To some extent, no matter what its products or services, every organization is in the business of risk management.Most executives would likely agree that risk management is part of their job, and there is probably agreement that risks are increasing rather than decreasing. But ask executives to elaborate on risk management and you'll no doubt get a variety of answers: "It's about preventing disasters," or, "It's something the insurance or finance people handle."Is it just business management?What does "risk management" mean to management in today's companies? Financial Executives Research Foundation recently published a book summarizing research on the subject gleaned from five companies in diverse industries. The book Making Enterprise Risk ManagementPay Off, reports on how the five are implementing enterprise-wide risk management. The companies studied were: Chase Manhattan Corp (now j . P. Morgan Chase & Co.), E.Ldu Pont de Nemours and Co.Microsoft Corp., United Grain Growers, Ltd. and Unocal Corp.One key finding is that risk management is not just about finance insurance or disasters. It's about running the business effectively and understanding, at the core, the fun damental risks facing the business .Tim Ling, president and chief operating officerof Unocal (and the company's former CFO), emphasized, "think you will see almost all companies over the next few years moving in the same direction [as we are],really trying to integrate the notion of risk management with the notion of just business management. To me,running a business is all about managing risk."Successful companies, almost by definition, have managed risks well,but practicing ―risk management‖ has typic ally been informal and implicit. Some companies may have survived without ever knowing their real portfolios of risks. Taking an implicit approach to risk management can be risky itself, as it's caused some major surprises to companies unaware of the explicit risks.Examples include major debacles such as product recalls or fraudulent securities trading, major shifts in markets that management missed or saw too late, and increasingly complex environmental or business changes not recognized by management. Successful risk management today is not just alxsut debacles and the downside –it’s as much about opportunities and the upside. As UGG's Peter Cox .said, it's a "strategic" initiative, not a "defensive" one.A paradigm shiftBy way of definition, enterprisewide risk management, or integrated risk management, is a paradigm shift for many companies. Its goal is to create, protect and enhance shareholder value by managing the uncertainties that could either negatively or positively influence achievementof the organization's objectives. Historically, managing risk was done in 'silos' rather than enter-prise-wide, That is, companies knew how to manage certain obvious risks individually but never thought about examining every risk and involving management in managing all of those risks. Typically, companies would have people who managed process risk, safety risk, insurance, financial and assorted other risks. A result of this fragmented approach was that companies would often take huge risks in some areas of the business while over-managing substantially smaller risks in other areas.Enterprise-wide risk management is a coordinated and focused approach for managing all risks together.What's driving companies to adopt enterprise-wide approaches to risk management? The study found three major reasons. For starters, risk management has gained recognition as companies have seen major debacles occur internally or at other companies. The size of these disasters can be devastating, and executives frequently lose their jobs as a result.Simply stated, one of the main reasons risk management hasbecome necessary is to manage strategically and avoid catastrophes.Secondly, many executives believe risks are greater than ever before. In fact, even being a chief executive is risky. The Economist(Nov. 11, 2000) reported that this past October alone, 129 chief executives left their companies and that the Business Council no longer puts an incoming executive on its member list immediately, but instead waits to see if the newcomer will last. Executives know the risks are there, but they are not sure what to do to manage them. Indeed, many executives would welcome a risk management plan and related risk ini'rastructure.The third reason concerns shareholder value. Companies have learned (as Unocal's Tim Lingexpressed) that managing risk is really about managing the business and therefore managing risk can create shareholder value if done correctly. Susan Stalnecker. DuPont strea.surer. comments on the old view of risk management versus the new,more integrated approach; "What we have is a control process now. We don't have a value creation process.That s what we re trying to do."The risk management processStudy results from ihe five companies clearly indicate there is no "cookie-cutter" or one-size-fits-all approach to risk management. Each company developed different yet overlapping approaches. Yet, in spite of the differences, each company’s management believed that their approach was adding value to their organization. The discussion that follows highlights some of the lessons learned about adding value through enterprise-wide risk management.1. Identify risks. Effective risk management initially means knowing your risks. Each of the case study companies had, in one way or another, made a concerted effort to identify its risks. Risks were identified in a variety of ways: using scenario analysis, brainstorming, performing risk self-assessments and generally by looking across the organization (or enterprise-wide) to make sure they had covered the major business risks. Karl Primm,Unocal’s general auditor, said of the new approach. ―Risk management is not new; managers have been doing this since the beginning of time. An integrated approach, however, does shed new light and benefits on the process." Risk identification is not static. As the business, economy and industry change, so do the risks and so,too. must the risk identification process.2. Rank risks. Once risks are identified, management can determine what to do withthem, depending on the effect of the risk on the business.A good first step in assessing the effect is to rank risks by some scale of impact and likelihood. DuPont implicitly lanks risks, while Microsoftuses risk rankings to generate "risk maps." (Risk maps are a graphical approach for viewing and plotting both likelihood and impact of risks.)Either way,can you imagine trying to run a business without knowing the real risks and without knowing the possible importance of each risk? It's a recipe for poor performance or even disaster. The goal is to make conscious decisions about risk,including all risks facing the business.3. Try to measure risks. As previously noted, some companies implicitly or explicitly rank risks; others decide to validate the risk's perceived importance. These companies want to have more evidence on importance before they make decisions about how to manage the risk.Gathering this additional evidence helps management allocate capital efficiently and avoid over-managingthose risks that are not as important while under-managing those that are important.Risk Measurement ApproachesBut some risks seem to defy reliable measurement. "The approach we have taken in financial risk and business risk is to try to quantify what we can and not necessarily worry that we are unable to capture everything in our measurement," said George Zinn. director of corporate finance for Microsoft, describing how his company views the problem. Still, companies should attempt serious risk measurement because it offers hard data to back up the perceived impact of risks.The most sophisticated measurement of risk occurs in the area of financial risk. Companies are using value at risk or V AR (effect of unlikely events in normal markets), and stress testing (effect of plausible events in abnormal markets)methodologies to measure the potential impact of the financial risks they face. To Microsoft. V AR provides a way to respond to the question. "How much risk is Microsoft taking?" Microsoft's treasurer, Brent Callinicos, said that before the company used V AR. it would have to ask "what they really meant." The risk management group, according to Callinicos, decided it "would tell anyone who asks what we mean when we say we have risk."The measurement of risk has been evolving from financial risk to now include non-financial risk which is more problematic. However, the companies studied havedeveloped eclectic approaches to measuring these various risks. For example:UGG took risk measurement to a new level by developing, among other measures, gain/loss curves for risks. Such curves reveal the dollar effect and likelihood of a risk affecting earnings. In addition, UGG found that a certain subset of its risks contributed to as much as 50 percent of the variance in revenues.Knowing what affects revenue (and earnings) variance is extremely valuable to any organization, and UGG was even able to negotiate insurance coverage incorporating its most significant risk, grain volume, at no incremental cost because the risks were integrated in the insurance package. Also, UGG's risk measurement included more than traditional financial risks.DuPont advanced financial risk measurement even further by developing earnings at risk (EAR) measurement tools. To DuPont,V AR was not as helpful because it's a concept that's haid for some managers to understand and manage. With EAR,DuPont measures the effect of risk on reported earnings. It can then manage risk to a specified earnings level based on the company's risk appetite. With this integrated view, it can even now begin to see how risks affect the likelihood of achieving certain earnings targets. At DuPont. this new approach is dramatically altering the way it manages risk.Chase Manhattan developed its own measurement system - share-holder value added (SV A), because management was concerned that decision-makers were not explicitly considering the cost of risk. ―We're in the business of taking risk, but we’re in the business of getting paid for the risks that we take," said vice chairman Marc Shapiro. Asset growth under SV A has slowed from 15 percent to two percent in only three years, while cash income is at a healthy 17 percent growth rate.Microsoft adds an advanced but different version of scenario analysis to assist with non-financial risk identification and measurement.The company's risk management group has utilized .several scenarios to identify key business risks. As Callinicos emphasized, "The scenarios are really what we're trying to protect against." Two scenarios are he possibility of an earthquake in lie Seattle region and a major downurn in the stock market.In some cases, after a risk was measured, management learned that the real effect of the risk was significantly lower or higher than they had previously believed. This further reflects the value of having good risk measurement. Bottom line:when management knows the real level of the risks they face, they can then manage thoserisks more effectively and successfully.Author affiliation:1Kathryn and Richard Kip Professor of Accounting, and KPMG Research Fellow of Accounting, University of North Florida2William Stamps Farish Professor of Free Enterprise, McIntire School of Commerce, University of Virginia3Associate professor of accounting, McIntire School of Commerce, University of Virginia危机管理:一个企业全面管理的方法托马斯.巴顿1、威廉2、保罗.沃克 3在21世纪全球商业运作的环境中,如全球化、技术力量、互联网、重组和改变消费者的期望等力量正在引起大量不确定性和巨大的风险。
企业并购财务风险分析 外文文献翻译
文献出处:Biao D. Analysis of Financial Risk Prevention in Mergers and Acquisitions[J]. International Business and Management, 2014, 9(2): 138-144.第一部分为译文,第二部分为原文。
默认格式:中文五号宋体,英文五号Times New Roma,行间距1.5倍。
企业并购财务风险的预防管理分析摘要:并购被认为是改善企业管理模式,扩大企业规模,调整产业结构的有效途径。
这种方法在世界各地的每一次盛行中都受到很多因素的影响,然而企业并购在中国的起步较晚。
复杂而快速变化的环境使得企业并购具有重大风险。
特别是并购流程每一步都有严重的财务风险。
并购存在各种财务风险,如果这些风险没有得到有效的解决和控制,任何时候都会导致企业失败。
因此,许多学者和企业家认为兼并和收购的财务风险是最大的问题。
本文将对并购财务风险提出有效的预防措施,减少财务风险带来的影响,增加并购成功机会,确保企业并购的实施。
关键词:并购,财务风险,因果关系,预防引言自1897年以来,西方资本主义国家的并购遭遇了五次浪潮。
每次并购对企业的结构优化和资源配置都起着重要的作用。
中国改革开放政策实施后,随着经济全球化的快速发展,并购成为企业扩大经营规模,实现国际化的重要途径之一。
20世纪80年代中国出现并购,当时并购行为在中国企业受到欢迎,尽管许多企业从事并购,但成功案例少。
因为并购行为有很多潜在风险,其中包括市场风险,财务风险,法律风险等。
然而,财务风险被认为是并购的主要问题。
因此,有必要研究并购和财务风险的内容,了解财务风险的特点及其影响,系统分析财务风险,具体来说,需要研究并购前的目标企业的定价风险,并购期间的支付风险和财务风险以及并购后的整合风险。
最后,本文提出了基于各种风险的预防和控制措施,这是降低财务风险并提高并购成功概率的有效途径。
中小企业的财务风险管理外文文献翻译2014年译文3000字
中小企业的财务风险管理外文文献翻译2014年译文3000字Financial Risk Management for Small and Medium-Sized Enterprises (SMEs)Financial risk management is an essential aspect of business management。
particularly for small and medium-sized enterprises (SMEs)。
SMEs face numerous financial risks。
including credit risk。
market risk。
liquidity risk。
and nal risk。
which can significantly impact their financial stability and growth prospects。
Therefore。
the effective management of financial risks is crucialfor SMEs to survive and thrive in today's competitive business environment.One of the primary challenges for SMEs in managing financial risks is their limited resources and expertise。
Unlike large ns。
SMEs often lack the financial resources and specialized staff to develop and implement comprehensive risk management strategies。
As a result。
银行风险管理外文文献及翻译
“RISK MANAGEMENT IN COMMERCIAL BANKS”(A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS) - ABSTRACT ONLY1. PREAMBLE:1.1 Risk Management:The future of banking will undoubtedly rest on risk management dynamics. Only those banks thathave efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Credit risk is the oldest and biggest risk that bank, by virtueof its very nature of business, inherits. This has however, acquired a greater significance in the recentpast for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing towards market driven economy. Competition from within and outside the country has intensified. This has resulted in multiplicity of risks both in numberand volume resulting in volatile markets. A precursor to successful management of credit risk is a clear understanding about risks involved in lending, quantifications of risks within each item of the portfolioand reaching a conclusion as to the likely composite credit risk profile of a bank.The corner stone of credit risk management is the establishment of a framework that defines corporate priorities, loan approval process, credit risk rating system, risk-adjusted pricing system, loan-review mechanism and comprehensive reporting system.1.2 Significance of the study:The fundamental business of lending has brought trouble to individual banks and entire banking system. It is, therefore, imperative that the banks are adequate systems for credit assessment of individual projects and evaluating risk associated therewith as well as the industry as a whole. Generally, Banks in India evaluate a proposal through the traditional tools of project financing, computing maximum permissible limits, assessing management capabilities and prescribing a ceilingfor an industry exposure. As banks move in to a new high powered world of financial operations and trading, with new risks, the need is felt for more sophisticated and versatile instruments for risk assessment, monitoring and controlling risk exposures. It is, therefore, time that banks managements equip themselves fully to grapple with the demands of creating tools and systems capable of assessing, monitoring and controlling risk exposures in a more scientific manner.Credit Risk, that is, default by the borrower to repay lent money, remains the most important riskto manage till date. The predominance of credit risk is even reflected in the composition of economic capital, which banks are required to keep a side for protection against various risks. According to one estimate, Credit Risk takes about 70% and 30%remaining is shared between the other two primary risks, namely Market risk (change in the market price and operational risk i.e., failure of internal controls, etc.). Quality borrowers (Tier-I borrowers) were able to access the capital market directly without going through the debt route. Hence, the credit route is now more open to lesser mortals (Tier-II borrowers).With margin levels going down, banks are unable to absorb the level of loan losses. There has been very little effort to develop a method where risks could be identified and measured. Most of the banks have developed internal rating systems for their borrowers, but there hasbeen verylittle study to compare such ratings with the final asset classification and also to fine-tune the rating system. Also risks peculiar to each industry are not identified and evaluated openly. Data collection is regular driven. Data on industry-wise, region-wise lending, industry-wise rehabilitated loan, can provide an insight into the future course to be adopted.Better and effective strategic credit risk management process is a better way to Manage portfolio credit risk. The process provides a framework to ensure consistency between strategy and implementation that reduces potential volatility in earnings and maximize shareholders wealth. Beyondand over riding the specifics of risk modeling issues, the challenge is moving towards improved creditrisk management lies in addressing banks’readiness and openness to accept change to a more transparent system, to rapidly metamorphosing markets, to more effective and efficient ways of operating and to meet market requirements and increased answerability to stake holders.There is a need for Strategic approach to Credit Risk Management (CRM) in Indian Commercial Banks, particularly in view of;(1) Higher NPAs level in comparison with global benchmark(2) RBI’ s stipulation about dividend distribution by the banks(3) Revised NPAs level and CAR norms(4) New Basel Capital Accord (Basel –II) revolutionAccording to the study conducted by ICRA Limited, the gross NPAs as a proportion of total advances for Indian Banks was 9.40 percent for financial year 2003 and 10.60 percent for financial year 20021. The value of the gross NPAs as ratio for financial year 2003 for the global benchmark banks was as low as 2.26 percent. Net NPAs as a proportion of net advances of Indian banks was 4.33 percent for financial year 2003 and 5.39 percent for financial year 2002. As against this, the value ofnet NPAs ratio for financial year 2003 for the global benchmark banks was 0.37 percent. Further, it was found that, the total advances of the banking sector to the commercial and agricultural sectors stood at Rs.8,00,000 crore. Of this, Rs.75,000 crore, or 9.40 percent of the total advances is bad and doubtful debt. The size of the NPAs portfolio in the Indian banking industry is close to Rs.1,00,000crore which is around 6 percent of India’ s GDP2.The RBI has recently announced that the banks should not pay dividends at more than 33.33 percent of their net profit. It has further provided that the banks having NPA levels less than 3 percentand having Capital Adequacy Reserve Ratio (CARR) of more than 11 percent for the last two years will only be eligible to declare dividends without the permission from RBI3. This step is for strengthening the balance sheet of all the banks in the country. The banks should provide sufficient provisions from their profits so as to bring down the net NPAs level to 3 percent of their advances.NPAs are the primary indicators of credit risk. Capital Adequacy Ratio (CAR) is another measureof credit risk. CAR is supposed to act as a buffer against credit loss, which isset at 9 percent under theRBI stipulation4. With a view to moving towards International best practices and to ensure greaterdue’ norm for identification of NPAs transparency, it has been decided to adopt the ’ 90 days’‘ overfrom the year ending March 31, 2004.The New Basel Capital Accord is scheduled to be implemented by the end of 2006. All the banking supervisors may have to join the Accord. Even the domestic banks in addition to internationally active banks may have to conform to the Accord principles in the coming decades. The RBI as the regulatorof the Indian banking industry has shown keen interest in strengthening the system, and the individual banks have responded in good measure in orienting themselves towards global best practices.1.3 Credit Risk Management(CRM) dynamics:The world over, credit risk has proved to be the most critical of all risks faced by a banking institution. A study of bank failures in New England found that, of the 62 banks in existence before 1984, which failed from 1989 to 1992, in 58 cases it was observed that loans and advances were notbeing repaid in time 5 . This signifies the role of credit risk management and therefore it forms the basisof present research analysis.Researchers and risk management practitioners have constantly tried to improve on current techniques and in recent years, enormous strides have been made in the art and science of credit risk measurement and management6. Much of the progress in this field has resulted form the limitations of traditional approaches to credit risk management and with the current Bank for International (BIS) regulatory model. Even in banks which regularly fine-tune credit policies and Settlement’ streamline credit processes, it is a real challenge for credit risk managers to correctly identify pocketsof risk concentration, quantify extent of risk carried, identify opportunities for diversification and balance the risk-return trade-off in their credit portfolio.The two distinct dimensions of credit risk management can readily be identified as preventive measures and curative measures. Preventive measures include risk assessment, risk measurement andrisk pricing, early warning system to pick early signals of future defaults and better credit portfolio diversification. The curative measures, on the other hand, aim at minimizing post-sanction loan losses through such steps as securitization, derivative trading, risk sharing, legal enforcement etc. It is widely believed that an ounce of prevention is worth a pound of cure. Therefore, the focus of the study is on preventive measures in tune with the norms prescribed by New Basel Capital Accord.The study also intends to throw some light on the two most significant developments impacting the fundamentals of credit risk management practices of banking industry – New Basel Capital Accord and Risk Based Supervision. Apart from highlighting the salient features of credit risk management prescriptions under New Basel Accord, attempts are made to codify the response of Indian banking professionals to various proposals under the accord. Similarly, RBI proposed Risk Based Supervision (RBS) is examined to capture its direction and implementation problems。
企业风险管理与公司绩效外文文献翻译中英文2020
企业风险管理与公司绩效外文翻译中英文2020英文Enterprise risk management and firm performance: Role of the riskcommitteeMuhammad Malik, Mahbub Zaman, Sherrena Buckby AbstractIn recent years, there have been increasing efforts in the corporate world to invest in risk management and governance processes. In this paper, we examine the impact of Enterprise Risk Management (ERM) on firm performance by examining whether firm performance is strengthened or weakened by the establishment of a board-level risk committee (BLRC), an important governance mechanism that oversees ERM processes. Based on 260 observations from FTSE350 listed firms in the UK during 2012–2015, we find the effectiveness of ERM significantly and positively affects firm performance. We also find strong BLRC governance complements this relationship and increases the firm performance effects of ERM. Our findings suggest the mere formation of a BLRC is not a panacea for ERM oversight; however, existence of a structurally strong BLRC is crucial for effective ERM governance.Keywords: Enterprise risk management, Risk committee, Risk governance, Firm performanceIntroductionRecent events, including the corporate downfalls of the early 2000s and the Global Financial Crisis (GFC) of 2007–09, have led to increased international regulatory efforts to enhance risk management (RM) practices. In the UK, the Walker Report (2009) and guidelines from the Financial Reporting Council (FRC, 2011, FRC, 2014a, FRC, 2014b) suggest listed firms should adhere to sophisticated RM practices, including the creation of a holistic RM framework and greater involvement from boards of directors in risk governance. An increasing number of UK listed firms now adhere to these recommendations, which focus on the establishment of an Enterprise Risk Management (ERM) process and the establishment of a board-level risk committee (BLRC) to enhance the board’s risk oversight function. This paper contributes to the literature on ERM by examining the impact of ERM on UK firm performance, particularly whether this relationship is strengthened or weakened by the adoption of a BLRC. To date, research investigating the roles and outcomes of a BLRC is scarce. This study focuses on evidence from UK listed firms to provide key insights into this emerging issue.Our study, motivated by key corporate governance guidelines, considers the impact of ERM process adoption (including the structural strength of BLRC) on firm performance in UK FTSE350 firms. We apply Tobin’s Q as our firm performance measure based on prior resea rch(Baxter et al., 2013; Farrell and Gallagher, 2015, Hoyt and Liebenberg, 2011, Lin et al., 2012, McShane et al., 2011) and adopt the Gordon et al. (2009) ERM index as a composite measure of the effectiveness of ERM processes. Previous studies measure the presence of ERM activity using a binary variable (Hoyt and Liebenberg, 2011, Lechner and Gatzert, 2018, Lin et al., 2012, Pagach and Warr, 2010). In contrast, the Gordon et al. (2009) index reflects the presence of an ERM function in a firm and measures the effectiveness of ERM processes regarding business strategy, operations, reporting, and compliance (COSO, 2004). BLRC structural strength is measured using six dimensions related to its structure and composition, drawing on risk governance guidelines and prior research on the effectiveness/efficacy of board-level committees with a similar monitoring role to the BLRC (Goodwin and Seow, 2002, Xie et al., 2003, Zaman et al., 2011).Our empirical findings suggest ERM is positively associated with UK firm performance. The results suggest ERM is an efficient form of “internal” RM and if overseen by the BLRC should maximize shareholders’ wealth. The findings suggest a structurally strong BLRC (a committee with high levels of monitoring and diligence comprised of financial experts exhibiting gender diversity) strengthens ERM impact on firm performance. This implies BLRC adoption by itself is insufficient to achieve ERM oversight. However, BLRC structural strength is identifiedas necessary for effective ERM governance. As BLRC formation is an emerging ERM practice (Brown et al., 2009, Hines et al., 2015), our study addresses a gap in current RM literature by examining whether a BLRC strengthens or weakens the impact of ERM on firm performance providing an important contribution to the field.BackgroundIn the UK, the Walker (2009) report and FRC guidelines (FRC, 2011, FRC, 2014a, FRC, 2014b) recommend UK listed firms should adopt a holistic approach to ERM. The guidelines suggest UK listed firms adopt a multifaceted approach to risk identification and risk assessment, and consider all the principal risks faced by the entity. An effective RM infrastructure adopted and governed by a high-level risk governance structure (a BLRC) promotes a strong risk culture at all levels of the firm, approves enterprise risk strategy and risk appetite, and monitors organisational risk mitigation plans. Taken together, the FRC (2014b) suggests listed firms should adopt a robust and effective RM system to safeguard against major risks that could seriously affect organisational performance, future prospects, or damage firm reputation. As a result of the clear guidance provided for risk committees in the UK, our study focuses on revealing whether BLRCs in listed firms are found to be structurally sufficient to support the ERM oversight functions outlined in the Walker (2009) report. We are motivated to gather evidenceof the relationship between ERM and firm performance using UK data for the following reasons. After the GFC, demand for firm-level risk oversight increased in the UK and internationally. The Walker (2009) report contributed to this demand by encouraging the formation of a BLRC and driving the adoption of an ERM function in listed UK firms.In the US, the Dodd-Frank Act (2010) also mandated similar requirements for US listed firms but did not provide the same level of detailed prescription regarding the role, responsibilities, and processes of a BLRC compared to UK regulations. Prior research has examined this relationship in US settings using various proxies for ERM. ERM research has not reached a consensus to date, with results indicating ERM is both value relevant (Gordon et al., 2009, Grace et al., 2015, McShane et al., 2011) and not value relevant (Beasley et al., 2008, Lin et al., 2012, Pagach and Warr, 2010). In Europe, two recent studies (Florio and Leoni, 2017, Lechner and Gatzert, 2018) find ERM is positively associated with firm performance. Due to this lack of consensus in the literature, we are motivated to examine the impact of ERM on firm performance using UK data to consider whether ERM is value relevant and whether it is associated with improved firm performance, especially when related to the adoption of a BLRC as an ERM governance mechanism.In a US based study, Gordon et al. (2009) propose the impact ofERM-driven firm performance is dependent upon the proper match between monitoring by the board4 and ERM processes. They posit how participation and encouragement from the board is essential for effective ERM adoption, a perspective shared by Kleffner et al., 2003, Sobel and Reding, 2004. Our study contributes by extending the findings of Gordon et al. (2009) across two dimensions. First, we recognise responsibility for ERM oversight is usually delegated to the BLRC, a sub-committee of the full board. Second, we examine how risk committee structural characteristics influence ERM effectiveness and consequently firm performance.Prior literature suggests a newly emerging BLRC generally assists the board in carrying out its ERM responsibilities, such as risk oversight, fostering risk culture, and improving the quality of risk monitoring and reporting (Aebi et al., 2012, Brown et al., 2009, COSO, 2004). RM literature in the UK provides evidence of risk reporting patterns in listed firms (Linsley and Shrives, 2005, Linsley and Shrives, 2006). However, the links between corporate governance and risk reporting (Abraham and Cox, 2007), and the effects of traditional RM on firm value (Panaretou, 2014), demonstrate there is a paucity of UK empirical evidence investigating the impact of ERM practices and the influence of a BLRC oversight on firm performance.Our paper contributes to international RM literature in the followingways. First, UK RM research focused on the incentives of risk reporting (Elshandidy et al., 2018). Our paper extends prior research by focusing on the informativeness of UK ERM practices (Baxter et al., 2013, Gordon et al., 2009, Florio and Leoni, 2017, Hoyt and Liebenberg, 2011, Lechner and Gatzert, 2018, Pagach and Warr, 2010). RM has received considerable attention from both professional and regulatory UK bodies, including improved RM guidelines from the FRC (FRC, 2011, FRC, 2014b). Panaretou (2014) examines the valuation impacts of derivative usage (a practice in financial RM) in UK firms and finds hedging practices are weakly or non-significantly associated with firm performance. We extend the study of Panaretou (2014) by examining the valuation impacts of the effectiveness of ERM processes. Our study contributes to the literature examining the risk-related corporate governance mechanisms that affect firm performance (Aebi et al., 2012, Ames et al., 2018, Brown et al., 2009, Florio and Leoni, 2017, Tao and Hutchinson, 2013). Previous studies suggest the presence of a BLRC represents strong RM (Aebi et al., 2012), indicating greater levels of ERM implementation and integration of RM in corporate governance mechanisms (Florio and Leoni, 2017). We extend these studies by investigating the impact of six key structural characteristics of a BLRC on firm performance effects of ERM.Discussion and conclusionIn recent years, there have been increased efforts in the UK to improve risk governance mechanisms. In this paper, we investigate whether a firm’s RM, particularly ERM processes, is linked to firm performance. We also examine the interaction role of the BLRC, as a risk governance mechanism, in this relationship. We find effective ERM processes improve firm performance measured by Tobin’s Q, thus giving support to the theoretical claims by prior researchers regarding performance implications associated with the implementation of ERM (Baxter et al., 2013, Brown et al., 2009, Florio and Leoni, 2017, Gordon et al., 2009, Liebenberg and Hoyt, 2003, Nocco and Stulz, 2006). This result infers the higher the effectiveness of a firm’s ERM, the greater the ability of the firm to achieve its strategic objectives i.e. strategy, operations, reporting, and compliance (COSO, 2004). We find that a BLRC improves the ERM and firm performance relationship. In particular, the existence of a strong BLRC is essential for ERM processes to be effective enough to increase market performance.Our study contributes to the empirical research on RM and has clear practical implications. First, the results demonstrate ERM is positively related to firm performance, and the adoption of ERM processes is more attractive for UK firms who have not yet implemented ERM. However, adoption is not sufficient – an effective ERM system needs to efficiently achiev e organisational objectives and positively impact shareholders’wealth creation. Unlike traditional silo-based RM, which is isolated, fragmented, and uncoordinated (task-by-task or department-by-department) with a focus solely on financial RM, the holistic approach of ERM incorporates and integrates decision-making at multiple levels and prevents risk aggregation within the organisation. By adopting an effective ERM, a firm can create value through: 1) strategy (by maximizing its market position relative to its competitors); 2) operations (by increasing operational efficiency); 3) reliable financial reporting system; and 4) compliance with applicable laws and regulations. COSO (2004) describes ERM best practice as including (but not be limited to) a holistic method of RM, standardization of risk measures, formalization of risk ownership at all levels of the organisation, engagement of all employees in RM processes, localization of risk culture, and assurance of proper recording, documentation and communication of risks and opportunities. We identify how adopting ERM practices in UK listed firms should more efficiently implement FRC guidelines on RM (FRC, 2011, FRC, 2014a, FRC, 2014b). Second, since ERM is a holistic approach embedded throughout the organisation, it provides a multifaceted platform for corporate governance when focusing on value maximization through RM. We find with regard to risk governance, the BLRC supports the function of ERM. Our results indicate the valuation outcomes of ERM are affected by the structure and composition of theBLRC.One of the key contributions of our study is how a structurally strong BLRC, larger in size, more active, and with higher independent, financial, female, and inter-committee directorships, supports a stronger ERM and firm performance relationship. Conversely, a weak BLRC could adversely affect this relationship and reduce the performance implications of ERM. Our study identifies that UK corporate regulatory bodies should introduce detailed guidelines in relation to BLRC formation and structure to promote better quality risk governance. Walker (2009) encourages firms to establish a BLRC and details their responsibilities, but does not stipulate clear guidelines on the committee’s structure and composition and interactions.Finally, our findings have international implications. Since COSO (2004) provides a globally accepted international level ERM framework (Florio and Leoni, 2017, Lechner and Gatzert, 2018), we suggest that to improve the effectiveness of ERM proces ses to meet a firm’s strategic objectives, it is crucial to improve firm performance implications. We expect the effectiveness of ERM processes supplements the important features of ERM identified by previous researchers, such as CRO appointment (Beasley et al., 2008), ERM ratings from external agencies (McShane et al., 2011), ERM program maturity (Farrell and Gallagher, 2015), and the level of ERM implementation (Florio and Leoni, 2017). Inaddition, as the adoption of BLRCs is increasing globally for the oversight of RM processes (Al-Hadi et al., 2016, Florio and Leoni, 2017, Hines and Peters, 2015, Ng et al., 2013, Tao and Hutchinson, 2013) we suggest structural balance of the BLRC is important for effective risk governance.As with all research, this study is not free from limitations. First, the small sample size limits the power of our analysis and generalizability of findings. As investments in RM and governance are continuing to increase; future researchers will be able to employ larger samples to ext end this study’s analysis and generalizations. Second, this study employs the Gordon et al. (2009) ERM index to measure the ERM effectiveness of a firm. This index focuses on the COSO (2004) framework and measures the strength of an ERM program, however, the index is unable to capture the maturity of the ERM program of a firm. Future studies could assist with developing a more sophisticated ERM index. Third, we ignore the independence of the ERM function. The Walker (2009) report requires an independent CRO to participate in the BLRC and the risk oversight process ultimately be accountable to the full board. A future study could further examine the risk-reporting framework of UK firms in terms of CRO reporting, accountability, and efficiency of the ERM function and BLRC monitoring.中文企业风险管理与公司绩效:风险委员会的作用穆罕默德·马利克马布卜·扎曼谢雷娜·巴克比摘要近年来,企业界在投资风险管理和治理流程方面做出了越来越多的努力。
企业风险管理(中英文)
Futures Contracts 期货(qīhuò)合约
• A future obligates one party to buy and another to sell a specified asset in the future at a price agreed on today 一份
• The notional amount is only used to determine the cash flows 名义交易量只用来确定现金流
第十一页,共三十页。
(juédìng)
•
9、 人的价值,在招收诱惑的一瞬间被决定
。2022/2/32022/2/3Thursday , February 03, 2022
The “New” Risk Management -1980s
“新式(xīnshì)”风险管理
Financial risk management 金融风险管理 Dealt with financial risk 面对金融风险 Foreign exchange risk 外汇风险 Interest rate risk 利率风险 Equity risk 股票风险 Commodity price risk 商品价格风险 Use derivatives to hedge financial risk
• Commodity price risk 商品价格风险
– Continental Airlines – 1990 大陆航空公司
• Fuel costs not hedged 没有做到燃料价格对冲 • Oil price doubled with Gulf War 海湾战争石油价格加倍
第六页,共三十页。
企业风险管理外文文献翻译译文5000字
文献出处:Bedard J C, Hoitash R, et al. The development of the enterprise risk management theory [J]. Contemporary Accounting Research, 2014, 30(4): 64-95.原文The development of the enterprise risk management theoryBedard J C, Hoitash RAbstractEnterprise risk management as an important field of risk management disciplines, in more than 50 years of development process of the implementation of dispersing from multiple areas of research to the integration of comprehensive risk management framework evolution, the theory of risk management and internal audit and control theory are two major theoretical sources of risk management theory has experienced from the traditional risk management, financial volatility to the development of the enterprise risk management, risk management and internal audit and control theory went through the internal accounting control and internal control integrated framework to the evolution of enterprise risk management, the development of the theory of the above two points to the direction of the enterprise risk management, finally realizes the integration development, enterprise risk management theory to become an important part of enterprise management is indispensable.Keywords: enterprise risk management, internal audit the internal control1 The first theory source, evolution of the theory of risk management"Risk management" as a kind of operation and management idea, has a long history: thousands of years ago in the west have "don't put all eggs in one basket" the proverb, the ancient Chinese famous "product valley hunger" allusions and "yicang (" system," boat was "organization have a prototype of the modern risk managementthought, and points under escort ship transportation, yuen, is effective way to spread risk, transfer risk .In the modern sense of risk management thought appeared in the first half of the 20th century, such as fayol's safe production ideas, Marshall's "risk sharing management" point of view, etc.;But risk management as a discipline system development is started in the middle of the 20th century: in 1950, gallagher in the risk management: a new stage of cost control in the paper, puts forward the concept of risk management; Johnso (1952) mentioned the problems how to deal with risks and uncertainties in farm management, which involves early enterprise (farms) of risk management problem.The emergence of risk management as a discipline real Mehr and Hedges of the enterprise risk management (1963) and C.A.Williams and Richard m. Heins "risk management and insurance" (1964) published marked. Williams and Heins thinks, "risk management is based on the risk identification, measurement and control to the smallest cost risk caused by the loss to the lowest level of management methods", risk management is not just a technology, a method, a kind of management process, and is a new and scientific management.The development of the theory of risk management.1.1The first stage: the 70 s and 1950 sTheoretical tendency mainly is the pure risk prevention and management of enterprise (adverse risk);Take the main strategy of enterprise risk management is risk avoidance and risk transfer, insurance becomes the main risk management tools. Fire events of general motors and the United States steel industry the workers went on strike to enterprise's normal operation caused serious impact and losses, become an important opportunity to promote the development of enterprise risk management theory. This phase the first important area of risk management theory, is the risk management object definition and research. Since the 20th century, scholars have been the object of risk management divided into two major categories of pure risk and speculative risk, and the pure risks as the object of risk management and the target (Denenberg, 1966; Gahin, 1967).In fact, the risk can be divided into pure risk and speculative risk is a kind of method based on the responsibility, is targeted at loss, isnot aimed at risk, so it can be divided into pure risk and speculative risk, but not as good as it can be divided into pure loss and speculative loss, because it can reflect the true respect of the risk manager more loss problem.Is the second important areas, to the enterprise decision-making and of behavior, and insurance in response to the important role of enterprise risk and universality of the study. Greene (1955) orientation is insurance buyers of risk management. A paper published in 1955, the management review "to the risk of a kind of management method", think of insurance as the most important means of enterprise risk management should be attention by the enterprise management and the shareholders, think insurance is a business spending the most valuable part of all kinds of costs. Denenberg etc. (1966) also emphasizes the insurance at this stage the important role of risk management, points out the important responsibility of the risk manager is to determine the appropriate insurance policy for the enterprise and insurance products, that will be the risk manager's name changed to "insurance and risk managers". Snider (1956), McCahill, Jr. (1971) stressed that risk management in the enterprise organization structure not only has a certain status, report to top management work, and want to maintain good communication and coordination with the finance department.A third important area is, the risk management theory into the analysis framework of mainstream economics and management.On the one hand, by the wind management theory combined with the traditional enterprise theory, the risk management of the decision-making process and the integration of enterprise's overall ing the capital asset pricing model, the decision rule of enterprise in the optimal retention ratio, cumulative franchise policy selection and choice of reserves, etc., makes the risk management theory into the financial market;And the use of marginal analysis tool to determine the optimal strategy of risk management, then further forming marks in risk management theory, and become an important area of finance (Cummins, 1976)., on the other hand, William g. Scott complex type combined with risk management organization system, through to the enterprise basic system and branch offices neat, will be the overall goal and the risk of the enterprisemanager daily target organic unification, then to the appraisal of the branch to contribution to the enterprise overall risk identification and measurement, and consider the relationship between them and the relationship between the dynamic characteristics, so as to provide theoretical sources for the development of risk management (Close,1974).1.2The second stage, the late 1970 s to the end of the 20th centuryRisk management object is mainly the business and financial results of volatility, risk management tools on the basis of insurance also achieved great development, new derivatives and alternative risk transfer (ART) play an important role.In the 1970 s, the collapse of the bretton woods system of exchange rate volatility significantly increased, oil price rising sharply, the production cost of enterprise is difficult to control;After entering the 80 s, high inflation and interest rate volatility and number of money and credit crisis makes the enterprise the management face greater uncertainty.Tool of a large number of applications in convenient enterprise risk management at the same time, also because of its characteristics of leveraged to amplify the damage due to improper use strategy of so the use of derivatives and the management strategy becomes very important.Therefore, the enterprise risk management and derivatives trading, hedge strategy should pay close attention to the competitor (Froot etc., 1994).And (2001) study found that such as Cummins, although the measurement of the risk and the liquidity as well as the decision-making has a positive connection of the underwriter, but for those who use derivatives to hedge risk, the risk index was has negative relationship with the width and depth of the hedge.1.3The third stage, since the 21st centuryAfter entering the 21st century, with the speeding up of the global economic integration, companies, increasing the risk for the influence of various risks and potential consequences will magnify, together with the complexity of the financial derivatives trading and frequency are increased rapidly, to the continuous operation of the enterprise put forward the serious challenge, the enterprise must break through thetraditional pattern of risk management, from a more comprehensive, integrated view of risk analysis and management, as a result, the comprehensive risk management stage of the development of risk management.The emergence of comprehensive risk management and application of risk management for the enterprise provides new methods and tools, its application field is very broad, from enterprises, non-profit organizations to the government are gradually introduced the analysis framework.2 Second theory sourceInternal audit and the development of control theory in the process of the evolution of enterprise risk management theory, theory of the second source is the evolution and development of internal audit and control theory.From the literature in internal audit and control of the internal accounting control, internal control integrated framework, enterprise risk management process of the overall framework, including the COSO has played a leading role, in particular, it issued two symbolic file "enterprise internal control, the overall framework" and "enterprise risk management - integrated framework".The separation of corporate ownership and control is the ultimate cause of internal audit and the emergence of a control theory, and the expansion of enterprise scale and the structure of the branch in shortage problem caused by the lack of management and control is to encourage enterprises to strengthen internal audit and control of direct motivation.2.1Internal accounting controlInternal accounting control is the first stage in the development of internal control theory.Grady (1957) pointed out that the internal accounting control is a comprehensive coordination of the organization plan and business process system, used to prevent unexpected or wrong operation to bring the asset losses, examination management decision used in accuracy and objectivity of accounting data, promote operational efficiency and encourage compliance with established policies, etc.In practice, accounting and audit personnel played a dominant role in the internalaccounting control, audit became the earliest forms of internal control, therefore, the internal control is in deepening and audit activities based on the theory of audit.But with the increase of the enterprise management activity, pure audit already cannot satisfy the needs of the enterprises, the internal control arises at the historic moment, the audit has become a part of the internal control (Haun, 1955).The internal audit activity is one of the important conditions, implement control and management of enterprises is a key component part of the internal control, is the eye of the "supervision" top management.For the internal control evaluation, the audit is the most important tools and stakeholders;At the same time, the audit data for the evaluation of internal control provides conditions, through a review of the audit data, can be a preliminary judgment of enterprise internal control system and in need of improvement, which provide ideas for the perfection of the internal control (Garbade, 1944; Mautz etc., 1966; Smith, 1972).2.2 The internal control framework as a wholeIn 1992, the COSO issued "enterprise internal control, the overall framework, system construction of the enterprise internal control system for the first time. The COSO framework of internal control, is more based on the perspective of independent accountants and auditors, puts forward the concept of enterprise internal control, think the overall internal control framework is mainly composed of control environment, risk assessment, control activities, information and communication, supervision, the five elements, thus the concept of internal control to completely break through the limitation of the audit, the category of management control comprehensive development to the enterprise.COCO, Canada in 1995, the report put forward higher request to the external auditor for the enterprise internal control to join the external factors. International institute of internal auditors in 1996 published "concept and responsibility:" report, think that should be pay more attention to the contribution and role of internal audit in the organization. The risk management of card of German report, ham pell, as well as comprehensive criteria guide turn bull report is the most famous and arguably Britainthree milestones in the internal control research, especially in 1992, DE Burleigh report on internal control, the relationship between the quality of financial reporting and corporate governance as the prerequisite, attaches great importance to the significance of independent audit committee on the internal control.2.3 The enterprise risk management framework as a wholeIn 2004, the COSO committee report in 2004, on the basis of combining the requirements of the sarbanes - oakes act, formally issued "enterprise risk management - integrated framework". The analysis framework will be within the scope of the internal control in enterprise risk management, formed a broader meaning of the internal risk management framework. Therefore, the development of the theory of internal audit and control the final point to the enterprise comprehensive risk management. Reviews the development of internal audit and control, it can be seen that the theory of evolution has experienced the process of "plane, three-dimensional, three-dimensional" : in the stage of internal accounting control, control environment, control activities, and accounting system in the plane of the three elements constitute a control system;In the overall framework of internal control, the control environment, risk assessment, control activities, information and communication, monitoring, five elements, evolved into a three-dimensional control system;In the overall enterprise risk management framework stage, the internal environment, goal setting, item identification, risk assessment, risk response, control activities, information and communication, monitoring, eight elements, makes the enterprise risk management, a solid control system3The development of the enterprise risk management theoryAfter entering the 21st century, the academic study of enterprise risk management, mainly focus on the following: the connotation of enterprise risk management and the target, achieve the goal of enterprise risk management mechanism, the implementation of enterprise risk management motivation as well asthe factors of the enterprise risk management.3.1 the connotation of enterprise risk managementKent d. Miller (1992) the source of the uncertainty problem of enterprise internationalization operation and performance are analyzed, and puts forward the thinking of integrated risk management, for the first time in academia the concept of integrated risk management is studied in detail. Later, scholars gradually with the definition of enterprise risk management refers to those using the method of comprehensive, integrated processing enterprise faces the risk of problems. Skipper (1994), Lisa Meulbroek (2002), enterprise risk management involves not only the profit loss without possibility, also focus on the possibility of benefits and risks. The COSO committee (2004) published an authoritative definition of enterprise risk management.3.2 Enterprise risk management goalsFor the goal of enterprise risk management, the academia mainly has a single teleology and multiple teleology two factions. The single core view of skopos theory is that the goal of enterprise risk management is to maximize the value of the shareholders of a company. Neal Enriquez (2001) pointed out that the main purpose of the enterprise risk management is in order to save a lot of trivial claims costs, facilitate enterprise of risk control, raise the value of the company. Multiple teleology of argument is that the purpose of the enterprise risk management is to achieve multiple goals in the development of enterprises. James Lam (2003), detailing the purpose of overall corporate risk management, including lower earnings volatility, to maximize the value of the shareholders of a company, and to promote professional and financial security, etc.; The COSO committee (2004) proposed the strategic target and business objectives, reporting, and compliance goals four goals.3.3The mechanism of the enterprise risk management, improve enterprise valueThe mechanism of enterprise risk management, improve enterprise value ismainly done through three ways: (1) the optimization of enterprise capital allocation. Enterprise risk management framework of capital structure management, can improve the return on equity and improve the corporate governance structure, which affects the value of the enterprise (Peter Tufano, 1996).(2) improve enterprise strategic decision level. Enterprise risk management will be integrated into the overall strategy of the enterprise risk management, covering the entire process and the development of the enterprise business, can make enterprises seize the opportunity and enhance competition ability, thus improve the performance of the company. Enterprise risk management can reduce the cost of enterprise was in financial trouble, reduce the probability of bankruptcy, reduce the influence of traditional liabilities to the company value (NeilDoherty, 2005).(3) to strengthen the management of incentive, in turn, improve the level of performance. If it can be through effective risk management measures to control the fluctuation of stock price, makes the sensitivity of management compensation to company performance is positive, so that it can solve the agency problem in corporate governance, so as to make the management efficiency and to enhance the value of the company (Aggarwal, 1999).3.4 The enterprise risk management: an empirical study of relationship between the value of the companyEnterprise risk management on earth has much impact on the promotion of enterprise value, simple qualitative analysis is difficult to get the exact conclusion. To do this through a variety of academic empirical method to research: (1) the overall level of study from the enterprise, the enterprise risk management of the company, its universality of the increase of the value of the company has a large (Cyree etc., 2004; Hoyt, etc., 2008);(2) from the specific business level, using tobin Q as substitution variables of enterprise value, found that use derivatives to hedge risk, the enterprise value of a positive growth trend (Allayannis etc., 2001; Bartram, etc., 2004; Nain, 2004; Kim, 2004);Karen berger (2007), ABB company as an example to analyze the risk communication to establish credibility and maintain the significance of the value of the company.4Summary and outlookCan clearly see through the above analysis, the theory of risk management and internal audit and control theory of the cross and integrated, makes the enterprise risk management in a more integrated and comprehensive perspective and method to deal with the risks of enterprise developing, to ensure the healthy and sustainable development of the enterprise. But in 2007 the outbreak of the subprime crisis, to the enterprise risk management to improve and perfect puts forward a new proposition: how to implement effective risk management to respondA new challenge? Have the following questions need to be further studied and discussed:4.1. The COSO - application problems of enterprise risk management framework.At present the framework is the core of enterprise risk management standards, but more from the perspective of process management is the framework to deal with the risk of enterprise, to real-time risk management is not enough attention, especially not fully consider the enterprise's solvency problems, in fact, enterprise bankruptcy is often insufficient solvency direct consequences. Therefore, the enterprise is the lack of risk management: in the analysis of enterprise risk management framework, how to pay attention to the solvency of enterprises and set up effective feasible evaluation index.4.2. The use of financial derivatives and structured finance instruments.Subprime mortgage crisis, the AIG, citigroup and other large financial institutions are far as companies used as risk reserve capital will not be able to meet the needs of the huge amount of structured products trading, high leverage multiples bring unexpected losses. Therefore, how to correctly treat and deal with problem of structured finance instruments, is the enterprise risk management cannot be ignored.4.3. The problem of corporate social responsibility and reputation.As from the simple to the requirement of enterprise profit extends to socialresponsibility and reputation, brand, and other fields, enterprise risk management must also be followed by development and extension, to include external stakeholders requirements in enterprise risk management framework, in a more broad perspective to the comprehensive risk management. Therefore, how an enterprise bear the social responsibility through sustainable risk management, realize the harmony of economic interests and social interests, is the future of enterprise risk management an important problem to be reckoned with.译文企业风险管理理论的发展贝达德;霍塔什摘要企业风险管理作为风险管理学科的一个重要领域,在50 多年的发展过程中实现了从多个领域的分散研究向全面风险管理一体化框架的演进,其中风险管理理论和内部审计与控制理论是两大理论来源,风险管理理论经历了从传统风险管理、财务波动性风险管理向企业风险管理的发展,而内部审计与控制理论也经历了内部会计控制、内部控制整体框架向企业风险管理的演进,上述两大理论的发展都指向了企业风险管理的方向,企业风险管理理论最终实现了集成发展,成为企业管理不可或缺的重要组成部分。
企业风险管理与公司绩效外文文献翻译中英文2020
外文文献翻译原文及译文(节选重点翻译)标题:企业风险管理与公司绩效外文翻译中英文2020文献出处:Muhammad Farhan Malik, Mahbub Zaman, Sherrena Buckby. [J]Journal of Contemporary Accounting & Economics, Volume 16, Issue 1, April 2020, PP:1-22译文字数:4400 多字英文Enterprise risk management and firm performance: Role of the riskcommitteeMuhammad Malik, Mahbub Zaman, Sherrena Buckby AbstractIn recent years, there have been increasing efforts in the corporate world to invest in risk management and governance processes. In this paper, we examine the impact of Enterprise Risk Management (ERM) on firm performance by examining whether firm performance is strengthened or weakened by the establishment of a board-level risk committee (BLRC), an important governance mechanism that oversees ERM processes. Based on 260 observations from FTSE350 listed firms in the UK during 2012–2015, we find the effectiveness of ERM significantly and positively affects firm performance. We also find strong BLRC governance complements this relationship and increases the firm performance effects of ERM. Our findings suggest the mere formation of a BLRC is not a panacea for ERM oversight; however, existence of a structurally strong BLRC is crucial for effective ERM governance.Keywords: Enterprise risk management, Risk committee, Risk governance, Firm performanceIntroductionRecent events, including the corporate downfalls of the early 2000sand the Global Financial Crisis (GFC) of 2007–09, have led to increased international regulatory efforts to enhance risk management (RM) practices. In the UK, the Walker Report (2009) and guidelines from the Financial Reporting Council (FRC, 2011, FRC, 2014a, FRC, 2014b) suggest listed firms should adhere to sophisticated RM practices, including the creation of a holistic RM framework and greater involvement from boards of directors in risk governance. An increasing number of UK listed firms now adhere to these recommendations, which focus on the establishment of an Enterprise Risk Management (ERM) process and the establishment of a board-level risk committee (BLRC) to enhance the board’s risk oversight function. This paper contributes to the literature on ERM by examining the impact of ERM on UK firm performance, particularly whether this relationship is strengthened or weakened by the adoption of a BLRC. To date, research investigating the roles and outcomes of a BLRC is scarce. This study focuses on evidence from UK listed firms to provide key insights into this emerging issue.Our study, motivated by key corporate governance guidelines, considers the impact of ERM process adoption (including the structural strength of BLRC) on firm performance in UK FTSE350 firms. We apply Tobin’s Q as our firm performance measure based on prior research (Baxter et al., 2013; Farrell and Gallagher, 2015, Hoyt and Liebenberg,2011, Lin et al., 2012, McShane et al., 2011) and adopt the Gordon et al. (2009) ERM index as a composite measure of the effectiveness of ERM processes. Previous studies measure the presence of ERM activity using a binary variable (Hoyt and Liebenberg, 2011, Lechner and Gatzert, 2018, Lin et al., 2012, Pagach and Warr, 2010). In contrast, the Gordon et al. (2009) index reflects the presence of an ERM function in a firm and measures the effectiveness of ERM processes regarding business strategy, operations, reporting, and compliance (COSO, 2004). BLRC structural strength is measured using six dimensions related to its structure and composition, drawing on risk governance guidelines and prior research on the effectiveness/efficacy of board-level committees with a similar monitoring role to the BLRC (Goodwin and Seow, 2002, Xie et al., 2003, Zaman et al., 2011).Our empirical findings suggest ERM is positively associated with UK firm performance. The results suggest ERM is an efficient form of “internal” RM and if overseen by the BLRC should maximize shareholders’ wealth. The findings suggest a structurally strong BLRC (a committee with high levels of monitoring and diligence comprised of financial experts exhibiting gender diversity) strengthens ERM impact on firm performance. This implies BLRC adoption by itself is insufficient to achieve ERM oversight. However, BLRC structural strength is identified as necessary for effective ERM governance. As BLRC formation is anemerging ERM practice (Brown et al., 2009, Hines et al., 2015), our study addresses a gap in current RM literature by examining whether a BLRC strengthens or weakens the impact of ERM on firm performance providing an important contribution to the field.BackgroundIn the UK, the Walker (2009) report and FRC guidelines (FRC, 2011, FRC, 2014a, FRC, 2014b) recommend UK listed firms should adopt a holistic approach to ERM. The guidelines suggest UK listed firms adopt a multifaceted approach to risk identification and risk assessment, and consider all the principal risks faced by the entity. An effective RM infrastructure adopted and governed by a high-level risk governance structure (a BLRC) promotes a strong risk culture at all levels of the firm, approves enterprise risk strategy and risk appetite, and monitors organisational risk mitigation plans. Taken together, the FRC (2014b) suggests listed firms should adopt a robust and effective RM system to safeguard against major risks that could seriously affect organisational performance, future prospects, or damage firm reputation. As a result of the clear guidance provided for risk committees in the UK, our study focuses on revealing whether BLRCs in listed firms are found to be structurally sufficient to support the ERM oversight functions outlined in the Walker (2009) report. We are motivated to gather evidence of the relationship between ERM and firm performance usingUK data for the following reasons. After the GFC, demand for firm-level risk oversight increased in the UK and internationally. The Walker (2009) report contributed to this demand by encouraging the formation of a BLRC and driving the adoption of an ERM function in listed UK firms.In the US, the Dodd-Frank Act (2010) also mandated similar requirements for US listed firms but did not provide the same level of detailed prescription regarding the role, responsibilities, and processes of a BLRC compared to UK regulations. Prior research has examined this relationship in US settings using various proxies for ERM. ERM research has not reached a consensus to date, with results indicating ERM is both value relevant (Gordon et al., 2009, Grace et al., 2015, McShane et al., 2011) and not value relevant (Beasley et al., 2008, Lin et al., 2012, Pagach and Warr, 2010). In Europe, two recent studies (Florio and Leoni, 2017, Lechner and Gatzert, 2018) find ERM is positively associated with firm performance. Due to this lack of consensus in the literature, we are motivated to examine the impact of ERM on firm performance using UK data to consider whether ERM is value relevant and whether it is associated with improved firm performance, especially when related to the adoption of a BLRC as an ERM governance mechanism.In a US based study, Gordon et al. (2009) propose the impact of ERM-driven firm performance is dependent upon the proper matchbetween monitoring by the board4 and ERM processes. They posit how participation and encouragement from the board is essential for effective ERM adoption, a perspective shared by Kleffner et al., 2003, Sobel and Reding, 2004. Our study contributes by extending the findings of Gordon et al. (2009) across two dimensions. First, we recognise responsibility for ERM oversight is usually delegated to the BLRC, a sub-committee of the full board. Second, we examine how risk committee structural characteristics influence ERM effectiveness and consequently firm performance.Prior literature suggests a newly emerging BLRC generally assists the board in carrying out its ERM responsibilities, such as risk oversight, fostering risk culture, and improving the quality of risk monitoring and reporting (Aebi et al., 2012, Brown et al., 2009, COSO, 2004). RM literature in the UK provides evidence of risk reporting patterns in listed firms (Linsley and Shrives, 2005, Linsley and Shrives, 2006). However, the links between corporate governance and risk reporting (Abraham and Cox, 2007), and the effects of traditional RM on firm value (Panaretou, 2014), demonstrate there is a paucity of UK empirical evidence investigating the impact of ERM practices and the influence of a BLRC oversight on firm performance.Our paper contributes to international RM literature in the following ways. First, UK RM research focused on the incentives of risk reporting(Elshandidy et al., 2018). Our paper extends prior research by focusing on the informativeness of UK ERM practices (Baxter et al., 2013, Gordon et al., 2009, Florio and Leoni, 2017, Hoyt and Liebenberg, 2011, Lechner and Gatzert, 2018, Pagach and Warr, 2010). RM has received considerable attention from both professional and regulatory UK bodies, including improved RM guidelines from the FRC (FRC, 2011, FRC, 2014b). Panaretou (2014) examines the valuation impacts of derivative usage (a practice in financial RM) in UK firms and finds hedging practices are weakly or non-significantly associated with firm performance. We extend the study of Panaretou (2014) by examining the valuation impacts of the effectiveness of ERM processes. Our study contributes to the literature examining the risk-related corporate governance mechanisms that affect firm performance (Aebi et al., 2012, Ames et al., 2018, Brown et al., 2009, Florio and Leoni, 2017, Tao and Hutchinson, 2013). Previous studies suggest the presence of a BLRC represents strong RM (Aebi et al., 2012), indicating greater levels of ERM implementation and integration of RM in corporate governance mechanisms (Florio and Leoni, 2017). We extend these studies by investigating the impact of six key structural characteristics of a BLRC on firm performance effects of ERM.Discussion and conclusionIn recent years, there have been increased efforts in the UK toimprove risk governance mechanisms. In this paper, we investigate whether a firm’s RM, particularly ERM processes, is linked to firm performance. We also examine the interaction role of the BLRC, as a risk governance mechanism, in this relationship. We find effective ERM processes improve firm performance measured by Tobin’s Q, thus giving support to the theoretical claims by prior researchers regarding performance implications associated with the implementation of ERM (Baxter et al., 2013, Brown et al., 2009, Florio and Leoni, 2017, Gordon et al., 2009, Liebenberg and Hoyt, 2003, Nocco and Stulz, 2006). This result infers the higher the effectiveness of a firm’s ERM, the greater the ability of the firm to achieve its strategic objectives i.e. strategy, operations, reporting, and compliance (COSO, 2004). We find that a BLRC improves the ERM and firm performance relationship. In particular, the existence of a strong BLRC is essential for ERM processes to be effective enough to increase market performance.Our study contributes to the empirical research on RM and has clear practical implications. First, the results demonstrate ERM is positively related to firm performance, and the adoption of ERM processes is more attractive for UK firms who have not yet implemented ERM. However, adoption is not sufficient – an effective ERM system needs to efficiently achieve organisational objectives and positively impact shareholders’ wealth creation. Unlike traditional silo-based RM, which is isolated,fragmented, and uncoordinated (task-by-task or department-by- department) with a focus solely on financial RM, the holistic approach of ERM incorporates and integrates decision-making at multiple levels and prevents risk aggregation within the organisation. By adopting an effective ERM, a firm can create value through: 1) strategy (by maximizing its market position relative to its competitors); 2) operations (by increasing operational efficiency); 3) reliable financial reporting system; and 4) compliance with applicable laws and regulations. COSO (2004) describes ERM best practice as including (but not be limited to) a holistic method of RM, standardization of risk measures, formalization of risk ownership at all levels of the organisation, engagement of all employees in RM processes, localization of risk culture, and assurance of proper recording, documentation and communication of risks and opportunities. We identify how adopting ERM practices in UK listed firms should more efficiently implement FRC guidelines on RM (FRC, 2011, FRC, 2014a, FRC, 2014b). Second, since ERM is a holistic approach embedded throughout the organisation, it provides a multifaceted platform for corporate governance when focusing on value maximization through RM. We find with regard to risk governance, the BLRC supports the function of ERM. Our results indicate the valuation outcomes of ERM are affected by the structure and composition of the BLRC.One of the key contributions of our study is how a structurally strong BLRC, larger in size, more active, and with higher independent, financial, female, and inter-committee directorships, supports a stronger ERM and firm performance relationship. Conversely, a weak BLRC could adversely affect this relationship and reduce the performance implications of ERM. Our study identifies that UK corporate regulatory bodies should introduce detailed guidelines in relation to BLRC formation and structure to promote better quality risk governance. Walker (2009) encourages firms to establish a BLRC and details their responsibilities, but does not stipulate clear guidelines on the committee’s structure and composition and interactions.Finally, our findings have international implications. Since COSO (2004) provides a globally accepted international level ERM framework (Florio and Leoni, 2017, Lechner and Gatzert, 2018), we suggest that to improve the effectiveness of ERM processes to meet a firm’s strategic objectives, it is crucial to improve firm performance implications. We expect the effectiveness of ERM processes supplements the important features of ERM identified by previous researchers, such as CRO appointment (Beasley et al., 2008), ERM ratings from external agencies (McShane et al., 2011), ERM program maturity (Farrell and Gallagher, 2015), and the level of ERM implementation (Florio and Leoni, 2017). In addition, as the adoption of BLRCs is increasing globally for theoversight of RM processes (Al-Hadi et al., 2016, Florio and Leoni, 2017, Hines and Peters, 2015, Ng et al., 2013, Tao and Hutchinson, 2013) we suggest structural balance of the BLRC is important for effective risk governance.As with all research, this study is not free from limitations. First, the small sample size limits the power of our analysis and generalizability of findings. As investments in RM and governance are continuing to increase; future researchers will be able to employ larger samples to extend this study’s analysis and generalizations. Second, this study employs the Gordon et al. (2009) ERM index to measure the ERM effectiveness of a firm. This index focuses on the COSO (2004) framework and measures the strength of an ERM program, however, the index is unable to capture the maturity of the ERM program of a firm. Future studies could assist with developing a more sophisticated ERM index. Third, we ignore the independence of the ERM function. The Walker (2009) report requires an independent CRO to participate in the BLRC and the risk oversight process ultimately be accountable to the full board. A future study could further examine the risk-reporting framework of UK firms in terms of CRO reporting, accountability, and efficiency of the ERM function and BLRC monitoring.中文企业风险管理与公司绩效:风险委员会的作用穆罕默德·马利克马布卜·扎曼谢雷娜·巴克比摘要近年来,企业界在投资风险管理和治理流程方面做出了越来越多的努力。
企业风险管理(中英文)
风险转移 (Risk Transfer)
总结词
风险转移是通过将风险暴露转移给其他实体 或第三方来降低潜在损失的管理策略。
详细描述
风险转移通常涉及保险、外包或与其他企业 合作等手段。通过将这些风险转移给更能够 应对和管理风险的实体,企业可以降低自身
风险敞口。
风险容忍 (Risk Tolerance)
• Enterprise Risk Management Organization and Processes
目录
• Corporate risk management culture and awareness
• Case Analysis of Enterprise Risk Management
Case Three: Credit Risk Management Practice of a Certain Enterprise
某企业的信用风险管理实践
This case study examines how a certain enterprise manages credit risks through effective credit policies and procedures.
风险管理信息系统
数据收集
收集内外部数据,包括 财务、市场、行业等数
据。
数据处理
对收集的数据进行清洗、 整合和加工,生成风险
管理所需的信息。
数据分析
运用统计分析、机器学 习等技术,对数据进行 深入分析,发现潜在风
险。
数据展示
将分析结果以图表、报 告等形式展示给管理层 和业务部门,支持决策
制定。
05
制定风险管理政策和流程,明 确各部门在风险管理中的职责 和角色。
企业风险管理外文翻译文献编辑
文献信息:文献标题:Does Enterprise risk management enhance operating performance?(企业风险管理提高了企业经营绩效吗?)国外作者:Carolyn Callahan,Jared Soileau文献出处:《Advances in Accounting》,2017,37:122-139字数统计:英文1964单词,11443字符;中文3814汉字外文文献:Does Enterprise risk management enhance operatingperformance?Abstract The Committee of Sponsoring Organizations (COSO) Enterprise Risk Management (ERM) framework (COSOERM) indicates that the development of an enterprise-wide risk assessment and management process is designed to “provide reasonable assurance regarding the achievement of entity objectives.” We examine this issue and hypothesize that firms with mature ERM processes should achieve greater operational performance than those with less mature risk management processes. This study relies on internal audit function management survey responses matched with archival firm level data to gain a better understanding of the expected operating performance impact of the multi-stage ERM implementation process. After controlling for board governance and other known effects, we find that firms with higher levels of ERM process maturity are characterized by higher operating performance than their industry peers utilizing performance metrics closely related to the earnings process. Our study provides support for the linkage of enhanced operating performance associated with the maturity of ERM processes and suggests other potential areas of ERM research.Keywords:Enterprise risk management; Operating performance; Corporate governance1.IntroductionIn order to address the lack of a systematic enterprise-wide risk management plan, in 2004, the Committee of Sponsoring Organizations (COSO) of the Treadway Commission created an Enterprise Risk Management framework (COSO-ERM). COSO-ERM defines Enterprise Risk Management (ERM) as an enterprise-wide risk assessment and management process designed to “provide reasonable assurance regarding the achievement of entity objectives.”Although adoption of risk management may not specifically change the level of organizational risk, it likely impacts the actual measurement and monitoring of risk throughout the firm. As a result of targeting specific levels of risk, firms are likely to reduce downside operating performance volatility while accomplishing their ordinary business goals and objectives which include generating profits and providing shareholder value. Moreover, COSO's definition of ERM implies that firms implementing ERM processes should be more likely to achieve enhanced operating and market performance, yet this empirical link remains unclear.2.Literature review2.1.Benefits of implementing ERMImplementing ERM requires a significant investment by firms; however the operational benefits of decreased costs and increased revenues are not always readily identifiable. Relying on the disclosure of appointments of Chief Risk Officers (CRO) as a proxy for ERM adoption, Lam (2001) finds that firms are able to “reduce losses and earnings volatility”and improve return on capital and shareholder value by implementing ERM. Also using CRO appointments as a proxy for the implementation of an ERM process, Pagach and Warr (2010) find that firms adopting ERM experience a reduction in the volatility of earnings but do not find general support for ERM creating value across several additional measures.Tonello (2007) contends that an effective ERM implementation considers the consequences of downside risk (negative consequences of events) and methods formitigating or avoiding such risk, as well as identification and analysis of upside risk frequently referred to as opportunities. Tonello (2007) suggests that ERM attempts to balance (optimize) the threats and opportunities that may lead to cost reductions through the increased integration of risk assessment and management. This would lead to more profitable investment decisions and a more objective basis for resource allocation. These cost reductions and improved investment decisions increase firm cash flows and can provide additional operational benefits.Consistent with this line of reasoning, Pagach and Warr (2010) and Tonello (2007) suggest that benefits of balancing the entire set of firm risk leads to less volatile earnings that are associated with lower stock price volatility. More recently, using a cross-section of financial sector firms, Baxter et al. (2013) find that Standard & Poor's ERM Quality ratings have a positive association with operating performance and firm value. McShane et al. (2011) find a positive association between the Standard & Poor's ERM Quality rating and firm value (Tobin's Q) within the insurance industry. However, McShane et al. (2011) find that it is not advanced ERM ratings that drive the results, but instead the midpoint rating (adequate with positive trend) that is significantly different from those with “weak”or “adequate”.2.2.Operational performance measuresIn order to develop our performance metrics, we rely upon previous performance literature (e.g. Ittner, Larcker, & Randall, 2003; Chen, Cheng, & Hwang, 2005). A survey-based study by the Milliman Risk Institute (2014) indicates that for ERM trendsetters, the top 5 ways ERM creates value for firms include improved performance management, improved risk-adjusted decision making, enhanced board oversight, improved capital efficiencies, and higher quality of strategic planning. With the exception of capital efficiency, the other four measures are not readily captured from public information. As a result, we focus on return on assets and equity. Prior studies have found differences or changes in firm characteristics to be associated with changes in operational performance measures (e.g. ROA and ROE) closely related to the earnings process. Maiga and Jacobs (2008), find that the adoption of just-in-time inventory management systems is associated with enhanced operating performance.Using industry-adjusted ROA as a proxy for operating performance, Core, Guay, and Rusticus (2006) find that firms with greater shareholder rights outperform firms with lesser shareholder rights. Holm, Kumar, and Plenborg (2016) find that firms that implement customer accounting systems are associated with temporarily higher ROA compared to the industry. More closely related to this study, Brown and Caylor (2009) find that enhanced governance, as proxied by their Governance-Score measure (Gov-Score), is positively associated with industry-adjusted measures of ROA and ROE. This study builds on these prior findings and attempts to mitigate previous data limitations and expand industry focus beyond financial and insurance sectors in evaluating the relationship between the assessed ERM process maturity and operating performance.3.Hypothesis developmentCOSO-ERM (2004), Lam (2001), Tonello (2007), and many others suggest that effective risk management should lead to enhanced operational performance. Despite these explicit predictions, to our knowledge, only two studies (Baxter et al., 2013; McShane et al., 2011) have evaluated the influence of ERM processes on operating performance. However the samples of the aforementioned studies were primarily limited to firms within financial and insurance sectors and due to extensive industry regulations are not generalizable to other industries. This study expands on these prior studies by evaluating the influence of the ERM process maturity stage on operating performance across a broad sample of industries. Although our study is most closely related to McShane et al. (2011) in consideration of ERM maturity, our sample window is longer, more diversified across industries other than insurance and focuses on operating performance as opposed to firm value (Tobin's Q). As a result our study is generalizable to various industries and is focused on operational performance that should allow for more control in managing risk.Organizations can establish a low level risk appetite in order to reduce downside losses at the cost of reducing opportunities for investing in upside profitable opportunities. Alternatively, in attempting to achieve high returns, firms can focusmyopically on upside opportunities while not completely evaluating the potential for extreme losses. The integration of risk identification, assessment, and response throughout the entire organization allows firms with mature ERM processes to attempt to mitigate tunnel vision on profitability thereby reducing the likelihood of accepting too much risk and exposing the firm to excessive downside risk. While this approach may discourage firms from investing in potential risky high return projects, it is also expected to mitigate against extreme loss events. Consistent with the sixth premise of the COSO-ERM Framework, improving the deployment of capital, we argue that ERM adoption will lead to increased return on capital (ROA and ROE).Therefore firms with mature ERM processes will logically experience higher operating performance (e.g. ROA) than firms that have not implemented ERM. Furthermore, firms with more mature or advanced ERM activities should also experience higher ROA than those in earlier stages or not having adopted ERM practices. This leads to our basic hypothesis stated in the alternative form: There is a cross-sectional positive association between ERM maturity and industry-adjusted ROA and ROE.4.Methodology and sample selectionBarton et al. (2012) indicate that for ERM to be effective, it cannot be stagnant, but instead it “should be organic and alive.”Consistent with this point, we use a unique data set obtained via a web-based survey of internal audit management of U.S. based publicly traded firms that provides an assessment of ERM maturity for each year during a three year period. Survey responses were then matched to archival financial statement data obtained from the Compustat database. We construct an operating performance panel dataset and use regression models over the three year period from 2006 to 2008 corresponding to the survey data.An on-line survey was sent via email to internal audit function management level employees at 1631 firms throughout the U.S. and other countries identified via web-based key word searches for internal audit management titles. The survey and follow-up requests were emailed between July and October 2009. This resulted in 496responses received from survey respondents (30.4% response rate) as a potential sample. However, thirty-nine firms did not provide an ERM maturity response for each of the five ERM objectives (ERMOVR, ERMOPS, ERMSTRAT, ERMCOMP, ERMRPT) for at least one year (2006, 2007, or 2008). Another 242 were firms not able to match to Compustat (e.g. not publicly traded firms or foreign firms not in Compustat) with complete responses. An additional 34 firms within the Finance and Insurance industries (SIC 6000–6999) were eliminated from the sample due to regulatory differences related to these industry segments. Seven firms were missing financial data from Compustat, while board data was not found for twelve firms needed to compute regression variables and were therefore eliminated resulting in a sample of 162 firms (427 firm year observations) for the ROA and ROE models.The sample including the number of responses and mean ERM process maturity level classified by GIC industry classification and fiscal year. Using all available Compustat observations within these industry classifications, we compute our industryadjusted operating performance measures. The Industry classifications comprising the largest percentage of survey responses include Capital Goods (13%), Materials (12%) and Energy (10%). The industries indicating the most mature ERM processes are Food, Beverage, and Tobacco (3.00), Commercial & Professional Services (2.67), and Real Estate (2.67), whereas Media (0.50), Telecommunication Services (0.75), and Pharmaceutical, Biotechnology, and Life Sciences (1.09) reported the lowest ERM Overall maturity.5.Conclusions and contributionsUsing a unique survey-based dataset linked to archival firm data, we find a positive association between ERM process maturity and industry-adjusted operating performance (ROA and ROE) in a broad industry sample. In the wake of recent economic events that have raised significant concerns related to managing risk within firms, the results of this study provide limited empirical evidence of the benefits of ERM processes related to operating performance. Although all risk is not predictable, failing to attempt to identify and manage response to risk throughout a firm can havea detrimental impact.Our results provide support of a significant positive association between ERM Maturity and operating performance that extends the literature on the benefits of ERM process maturity to firms in non-financial industries. While not the only stakeholder to have an interest in the potential benefits associated with ERM adoption and maturity, executive management and the board of directors (and their committees) have the greatest control in adopting and implementing ERM processes and the quality of ERM activities. The results of these findings may provide additional management insights that have the potential to assist in the assessment of ERM investment decisions as well as contribute to future research studies on the value enhancing potential of ERM processes. Given that prior studies focus on short-term benefits, future studies should consider the long-term benefits that may be associated with ERM adoption and maturity of processes related to specific ERM objectives.中文译文:企业风险管理提高了企业经营绩效吗?摘要COSO企业风险管理框架(COSO-ERM)指出,制定全企业风险评估和管理过程的目的是“为实现目标提供合理保证”。
现代企业财务管理中英文对照外文翻译文献
现代企业财务管理中英文对照外文翻译文献(文档含英文原文和中文翻译)Discussion on the Modern Enterprise Financial ControlRyanDavidson ,JennyGoodwin-Stewart ,PamelaKentThis paper discusses the The modern enterprise is becoming China's economic development in the process of an important new force. However, with the modern enterprise investment on the scale of the expansion and extension of the growing investment levels, the modern enterprise financial control is becoming increasingly urgent. This is common in state-owned enterprise groups and private enterprise groups, a common predicament. At present, the modern enterprise is becoming China's enterprises to compete in the international market, the leading force. In a market economy under the conditions of modern business success or failure depends largely on the Group's financial management and financial control is a modern enterprise financial management of the link. Many of the modern enterprise bystrengthening the financial control so that the Group significant increase efficiency, and even some loss-making by strengthening the financial control of the modern enterprise to enable companies to achieve profitability. In this paper, expounding China's modern enterprises the main problems of financial control, based on the choice of financial control method was summarized and analyzed the content of the modern enterprise financial controls, the final resolution of the financial control mode selected key factors for the modern enterprise the improvement of financial control to provide a degree of meaningful views.1 IntroductionWith China's accession to WTO, China's enterprise groups must be on the world stage to compete with TNCs from developed countries. At present the development of enterprise groups in China is not satisfactory, although there are national policies and institutional reasons, but more important is its financial management in particular, caused by inadequate financial controls. For a long time, China's enterprise group cohesion is not strong, their respective subsidiaries within the Group for the array, can not play the whole advantage; redundant construction and haphazard introduction of frequent, small investments, decentralized prominent problem: financial management is chaotic, resulting in frequent loss of control, a waste of money the phenomenon of serious; ineffective financial control, financial management loopholes. In recent years, enterprise group's financial control has been our country's financial circles. In short, the problem of exploration in our country has obvious practical significance. Clearly, China's modern enterprise financial controls are the main problem is to solve the problem of financial control method based on the choice of financial control method is the key financial control of the modern enterprise content is content, while the financial control method of choice is the ultimate ownership of the main factors that point, This train of thought here on the modern enterprise's financial control method were analyzed.2. An overview of the modern enterprise financial controlInternal control over financial control is an important part, is a subsidiary of parent company control of an important part of its financial management system is the core of. The concept of modern enterprise financial controls in accordance with the traditional definition, financial control refers to the "Financial Officers (sector) through the financial regulations, financial systems, financial scale, financial planning goals of capital movement (or the daily financial activities, and cash flow) for guidance, organization, supervision and discipline, to ensure that the financial plan (goals) to achieve the management activities. financial control is an important part of financial management or basic functions, and financial projections, financial decision-making, financial analysis and evaluation together with a financial management system or all the functions.The modern enterprise's financial control is in the investor's ownership and corporate property rights based on the generated surrounding the Group's overallobjective, using a variety of financial means, the members of the enterprise's economic activities, regulation, guidance, control and supervision, so that it Management Group's development activities are consistent with the overall goal of maintaining the group as a whole. Financial control is a power to control one side of the side control, inevitably based on one or several powers. Financial control is essentially related to the interests of enterprises in the organization, the conduct of control, namely, by controlling the financial activities of the assets, personnel actions, to coordinate the objectives of the parties to ensure that business goals. The modern enterprise financial control includes two aspects: the owner funded financial control and corporate managers financial control. From the donors point of view, the essence of the modern enterprise is characterized by investor and corporate property rights of ownership and separation. Investors will invest its capital to the enterprise after their capital combined with debt capital, constitute the enterprise's capital, the formation of corporate business assets is funded by corporate property, then lost direct control over the funders in order to achieve itsCapital maintenance and appreciation of the goal, only through control of its capital manipulation of corporate assets in order to achieve the maximum capital value donors. The control of capital controls is an important property is the prerequisite and foundation for financial control. From the perspective of internal management of enterprises and its financial control target is the legal property of its operations.3 China's modern enterprises the main problems of financial controlAt present, the modern enterprise is becoming China's enterprises to compete in the international market, the leading force. In a market economy under the conditions of modern business success or failure depends largely on the Group's financial management and financial control is a modern enterprise financial management of the link. China's modern enterprise financial controls are still in the stage to be further improved, to varying degrees, there are some urgent need to address the problem:3.1 Financial control set decentralized model of polarization, low efficiencyIn the financial control of the set of decentralized model, China's modern enterprise polarization. The current group of financial control either over-centralization of power, the members of the business has no legal status as a subsidiary factory or workshop, the group is seen as a big business management, leadership financial rights absolute; or excessive decentralization, a large number of decentralized financial control to a subsidiary, any of its free development.In addition, the modern enterprise financial control system suited the needs of a market economy, financial control and flexibility of principle there is no organic unity. If the subordinate enterprises, with few financial decision-making power, then the temporary financial problems occur at every level always reported to the Group'sheadquarters, and then from the headquarters down the implementation of the decision-making at every level, so it is easy to miss market opportunities. On the contrary, when the subsidiary of financial decision-making power is too large, they easily lead to financial decision-making blind and mistakes, not only for the Group's staff to participate in market competition, failed to exercise any decision-making role, but will also become a competitor to the market to provide a tool for competitive information, hinder the the further development of enterprises.3.2 One of the lack of financial contro lFinancial control in accordance with the owner of intention, in accordance with relevant laws and regulations, systems and standards, through certain financial activities and financial relations, and financial activities to promote all aspects of the financial requirements in accordance with a code of conduct to conduct his activities. From China's current situation, the financial control of a modern enterprise mainly focused on ex post facto control, is often the lack of critical pre-budget and to control things. Many modern enterprises, after a decision is in advance, for further financial control tended to focus on the annual profit plan, to meet on the development of a full-year sales revenue, cost, target profit, and several other overarching objectives, without further specific decision-making technology to compile for control and management, according to the month, quarterly, annual financial budget. Therefore, the interim budget and thus difficult to compare operating performance is a matter to control the empty words. As for the ex post facto control, although based on the year-end assessment of the needs and to get some attention, they can still profit in the annual plan, based on the relevant accounting information barely supported by whom, but the effects are pretty effective. Since the ex ante control may not be effective, so subordinate enterprises throughout the implementation process of decision-making are largely outside the core business of financial control, divorced from the core business of financial control.Modern enterprises themselves do not establish a parent-subsidiary link up the financial control mechanisms, financial control their own ways, the parent company of the modern enterprise can not come to the unified arrangement of a strategic investment and financing activities, the group blindly expand the scale of investment, poor investment structure, external borrowing out of control, financial structure is extremely weak, once the economic downturn or product sales are sluggish, there barriers to capital flows, the Group into trouble when they become addicted. An internal financial assessment indicators are too single, not fully examine the performance of subsidiaries. A considerable number of modern enterprise's internal assessment targets only the amount of the contract amount and profit 2.3.3 regardless of the financial and accounting functions, institutional settings are not standardizedAt present, China's financial and accounting sector enterprises are usually joined together, such a body set up under the traditional planned economic system, stillcapable to meet the management needs, but the requirements of modern enterprise system, its shortcomings exposed. Manifested in: (1) financial services targeted at business owners, it is the specific operation and manipulation of objects is the enterprise's internal affairs, while the accounting of clients within the enterprise and external stakeholders, would provide open accounting information must reflect the "true and fair" principle. Will be different levels of clients and flexibility in a merger of two tasks, will inevitably lead to interference with the financial flexibility of the fairness of accounting. (2) The financial sector is committed to the financial planning, financial management, the arduous task, but flexible in its mandate, procedures and time requirements more flexible, but assume that the accounting information collection, processing, reporting and other accounting work, and flexibility in work assignments weak, procedures and time requirements more stringent and norms. If the enterprises, especially in modern enterprises to financial management and accounting work are mixed together, is likely to cause more "rigid" in accounting work runs more "flexible" financial management is difficult to get rid of long-standing emphasis on accounting, financial management light situation.3.4 irregularities in the operation of a modern enterprise fundsAt present, the modern enterprise fund operation of the following problems: First, a serious fragmentation of the modern enterprise funds. Some of the modern enterprise have not yet exceeded a certain link between the contractual relationship to conduct capital, operating, and its essence is still the executive order virtual enterprise jointly form of intra-group members are still strict division of spheres of influence, difficult to achieve centralized management of funds, unification deployment of large groups is difficult to play the role of big money. Second, the stock of capital make an inventory of modern enterprise poor results. Result of the planned economy under the "re-output, light efficiency, re-extension, light content, re-enter, light output" of inertia, making the enterprise carrying amount of funds available to make an inventory of large, but the actual make an inventory of room for small, thus affecting the to the effect of the stock of capital. Third, the modern enterprise funds accumulated a lot of precipitation.3.5 Internal audit exists in name onlyAt present, enterprises in the financial monitoring of internal audit work to become a mere formality process. The first formal audit management. Hyundai organized every year in different forms of audit, has become a fixed procedure, but because the internal audit staff and the audited entity at the same level, thus in the company's financial problems can not get to the bottom, just a form of and going through the motions. This audit not only failed to exercise any oversight role, to some extent encouraged the small number of staff violations of law. Second, nothing of audit responsibilities. Internal audit is a modern enterprise group commissioned by the audit staff members of Corporate Finance to conduct inspection and supervision process, and therefore the auditors have had an important mandate and responsibilities. But in reality, become a form of audit work, audit officers, whether seriously or not, are notrequired to bear the responsibility, thus making the audit is inadequate supervision. Third, the audit results and falsified. Audit results should be true and can be *, but in reality the different audit bodies of the same company during the same period of the audit, results are often different, and a far cry from, these are false true performance of the audit findings.4. Selected financial control model should be considered a major factor Generally speaking, the modern enterprise selects the financial control mode, the main consideration should be given these factors: equity concentration, a subsidiary of the degree of influence of the parent company financial strategy, organizational structure, development strategy, the group scale.From the group-level point of view, the parent company of the subsidiaries of the associated control to be strict control of the company, a wholly-owned subsidiary of the control to be strict control of the relatively holding subsidiaries, therefore, the parent company of the wholly owned subsidiary of and advantages of holding subsidiaries with centralized control, the quality holding subsidiaries and any shares of a subsidiary of the separation of powers system. To maintain and enhance the core competitiveness of modern enterprises of different degree of importance of a subsidiary should be taken to a different control mode. Have a significant impact on the subsidiary, the parent company must maintain a high degree of centralized control and management right, even partially, the separation of powers must be confined within the framework of centralized; right with the Group's development strategy, core competencies, core business and for the foreseeable the future development of relations in general, a subsidiary of little impact, from improving management efficiency, play to their enthusiasm and enhance the resilience of the market competition point of view, using decentralized type of management system, a better option.From the organizational structure point of view, U-type structure is a typical centralized structure, and accordingly, its financial control model should also be authoritarian style. H-is an organic organizational structure, a more loose linkages between various departments, departments have greater flexibility in the organization structure, with decentralized financial control model is more suitable, while the M-type structure belonging to phase Rong-type organizational structure, so the use of centralized financial control model can be used either decentralized model.From the operating characteristics of point of view, the different characteristics of the modern enterprise management, financial control mode selection will be different. And integration operations in a single case, all units within the group has a great business contacts, financial control naturally require higher degree of centralization.Enterprises to adopt diversification, because each subsidiary where the industry is different from the operational linkages between the various subsidiaries is relatively small, difficult to implement a modern enterprise integrated centralized control, and therefore the financial control of all subsidiaries should be given to the appropriate authority.From the development stage point of view, the modern enterprises in the different stages of development, in order to meet the needs of business development will take a different mode of financial control. Generally speaking, companies in the early stages of the development of small, relatively simple operations, using centralized financial control mode, you can better play the same decision-making and resource integration advantages in the industry has created a scale. With the continuous expansion of company size, business areas and constantly open up, Centralized financial control mode can not meet the company's financial controls and management methods on the need for diversification, and this time, we need more subsidiaries in all aspects of and more authority, so that the financial control model of a modern enterprise gradually to decentralized development.In addition, the financial control model should be subject to the enterprise's development strategy, fully reflects the company's strategic thinking. The company's development strategy can be divided into stable angina strategy, expansion-type strategy, tight-based strategies and hybrid strategies. Enterprises at different stages of the strategic choice of a particular need for financial control in accordance with * a different pattern. Stable implementation of the strategy is usually within the company can be a high degree of centralization of some; to implement expansionary strategy, companies tend to a more flexible decentralized type control mode to suit their developing needs of the market; the implementation of tight-based company's business strategy, all major financial activities must be strictly controlled, thus emphasizing centralization; hybrid strategy for the implementation of the company, it should be operated according to the characteristics of each subsidiary to take a different control mode.References:[1] Han Wei mold. Finance and Accounting Review of regulatory hot spots [M]. Beijing: Economic Science Press, 2004[2] Lin Zhong-gao. Financial governance. Beijing: Economic Management Publishing House [M], 2005[3] Yan Li Ye. Xu Xing-US; Enterprise Group Financial Control Theory and Its Implications, economics, dynamic [J], 2006[4] Lu Jie. On the internal financial control system improvements and management of popular science (research and practice) [J], 2007[5] Chen Chao-peng. Improve the corporate financial control measures, businessaccounting [J], 2007[6] Huang Xi. On the Enterprise Group Financial Control [J]. Chinese and foreign entrepreneurs, 2006, (06)[7] Jiang-feng tai. Enterprise Group Financial Control Studies [J]. Marketing Week. Theoretical study, 2006, (08)现代企业财务管理的探讨瑞安戴维森,珍妮古德温-斯图尔特,帕梅拉肯特本文探讨现代企业正在成为中国经济发展过程中的一个重要的新力量。
企业并购财务风险控制外文文献翻译译文3100字
企业并购财务风险控制外文文献翻译译文3100字Financial risk is one of the major XXX It refers to the risk of financial loss caused by the XXX in the value of assets。
The main types of financial risk in mergers and ns include credit risk。
interest rate risk。
exchange rate risk。
and liquidity risk。
Credit risk refers to the risk of default by the borrower。
while interest rate risk refers to the risk of XXX。
Exchange rate risk is the risk of XXX。
and liquidity risk refers to the risk of XXX.XXX。
it is XXX before the n。
including analyzing the financial status of the target company。
XXX。
and assessing the potential impact of interest rate and exchange rate XXX。
it is XXX a sound financial management system and XXX.1.2 Asset riskAsset risk refers to the risk of losses caused by the decline in the value of assets or the XXX the expected value of assets。
财务风险管理中英文对照外文翻译文献
财务风险管理中英文对照外文翻译文献译文:[美]卡伦〃A〃霍契.《什么是财务风险管理?》.《财务风险管理要点》.约翰.威立国际出版公司,2005:P1-22.财务风险管理尽管近年来金融风险大大增加,但风险和风险管理不是当代的主要问题。
全球市场越来越多的问题是,风险可能来自几千英里以外的与这些事件无关的国外市场。
意味着需要的信息可以在瞬间得到,而其后的市场反应,很快就发生了。
经济气候和市场可能会快速影响外汇汇率变化、利率及大宗商品价格,交易对手会迅速成为一个问题。
因此,重要的一点是要确保金融风险是可以被识别并且管理得当的。
准备是风险管理工作的一个关键组成部分。
什么是风险?风险给机会提供了基础。
风险和暴露的条款让它们在含义上有了细微的差别。
风险是指有损失的可能性,而暴露是可能的损失,尽管他们通常可以互换。
风险起因是由于暴露。
金融市场的暴露影响大多数机构,包括直接或间接的影响。
当一个组织的金融市场暴露,有损失的可能性,但也是一个获利或利润的机会。
金融市场的暴露可以提供战略性或竞争性的利益。
风险损失的可能性事件来自如市场价格的变化。
事件发生的可能性很小,但这可能导致损失率很高,特别麻烦,因为他们往往比预想的要严重得多。
换句话说,可能就是变异的风险回报。
由于它并不总是可能的,或者能满意地把风险消除,在决定如何管理它中了解它是很重要的一步。
识别暴露和风险形式的基础需要相应的财务风险管理策略。
财务风险是如何产生的呢?无数金融性质的交易包括销售和采购,投资和贷款,以及其他各种业务活动,产生了财务风险。
它可以出现在合法的交易中,新项目中,兼并和收购中,债务融资中,能源部分的成本中,或通过管理的活动,利益相关者,竞争者,外国政府,或天气出现。
当金融的价格变化很大,它可以增加成本,降低财政收入,或影响其他有不利影响的盈利能力的组织。
金融波动可能使人们难以规划和预算商品和服务的价格,并分配资金。
有三种金融风险的主要来源:1、金融风险起因于组织所暴露出来的市场价格的变化,如利率、汇率、和大宗商品价格。
企业风险管理中英文对照外文翻译文献
企业风险管理中英文对照外文翻译文献(文档含英文原文和中文翻译)原文:Risk ManagementThis chapter reviews and discusses the basic issues and principles of risk management, including: risk acceptability (tolerability); risk reduction and the ALARP principle; cautionary and precautionary principles. And presents a case study showing the importance of these issues and principles in a practical management context. Before we take a closer look, let us briefly address some basic features of risk management.The purpose of risk management is to ensure that adequate measures are taken to protect people, the environment, and assets from possible harmful consequences of the activities being undertaken, as well as to balance different concerns, in particular risks and costs. Risk management includes measures both to avoid the hazards and toreduce their potential harm. Traditionally, in industries such as nuclear, oil, and gas, risk management was based on a prescriptive regulating regime, in which detailed requirements were set with regard to the design and operation of the arrangements. This regime has gradually been replaced by a more goal-oriented regime, putting emphasis on what to achieve rather than on the means of achieving it.Risk management is an integral aspect of a goal-oriented regime. It is acknowledged that risk cannot be eliminated but must be managed. There is nowadays an enormous drive and enthusiasm in various industries and in society as a whole to implement risk management in organizations. There are high expectations that risk management is the proper framework through which to achieve high levels of performance.Risk management involves achieving an appropriate balance between realizing opportunities for gain and minimizing losses. It is an integral part of good management practice and an essential element of good corporate governance. It is an iterative process consisting of steps that, when undertaken in sequence, can lead to a continuous improvement in decision-making and facilitate a continuous improvement in performance.To support decision-making regarding design and operation, risk analyses are carried out. They include the identification of hazards and threats, cause analyses, consequence analyses, and risk descriptions. The results are then evaluated. The totality of the analyses and the evaluations are referred to as risk assessments. Risk assessment is followed by risk treatment, which is a process involving the development and implementation of measures to modify the risk, including measures designed to avoid, reduce (“optimize”), transfer, or retain the risk. Risk transfer means sharing with another party the benefit or loss associated with a risk. It is typically affected through insurance. Risk management covers all coordinated activities in the direction and control of an organization with regard to risk.In many enterprises, the risk management tasks are divided into three main categories: strategic risk, financial risk, and operational risk. Strategic risk includes aspects and factors that are important for the e nterprise’s long-term strategy and plans,for example mergers and acquisitions, technology, competition, political conditions, legislation and regulations, and labor market. Financial risk includes the enterprise’s financial situation, and includes: Market risk, associated with the costs of goods and services, foreign exchange rates and securities (shares, bonds, etc.). Credit risk, associated with a debtor’s failure to meet its obligations in accordance with agreed terms. Liquidity risk, reflecting lack of access to cash; the difficulty of selling an asset in a timely manner. Operational risk is related to conditions affecting the normal operating situation: Accidental events, including failures and defects, quality deviations, natural disasters. Intended acts; sabotage, disgruntled employees, etc. Loss of competence, key personnel. Legal circumstances, associated for instance, with defective contracts and liability insurance.For an enterprise to become successful in its implementation of risk management, top management needs to be involved, and activities must be put into effect on many levels. Some important points to ensure success are: the establishment of a strategy for risk management, i.e., the principles of how the enterprise defines and implements risk management. Should one simply follow the regulatory requirements (minimal requirements), or should one be the “best in the class”? The establishment of a risk management process for the enterprise, i.e. formal processes and routines that the enterprise is to follow. The establishment of management structures, with roles and responsibilities, such that the risk analysis process becomes integrated into the organization. The implementation of analyses and support systems, such as risk analysis tools, recording systems for occurrences of various types of events, etc. The communication, training, and development of a risk management culture, so that the competence, understanding, and motivation level within the organization is enhanced. Given the above fundamentals of risk management, the next step is to develop principles and a methodology that can be used in practical decision-making. This is not, however, straightforward. There are a number of challenges and here we address some of these: establishing an informative risk picture for the various decision alternatives, using this risk picture in a decision-making context. Establishing an informative risk picture means identifying appropriate risk indices and assessments ofuncertainties. Using the risk picture in a decision making context means the definition and application of risk acceptance criteria, cost benefit analyses and the ALARP principle, which states that risk should be reduced to a level which is as low as is reasonably practicable.It is common to define and describe risks in terms of probabilities and expected values. This has, however, been challenged, since the probabilities and expected values can camouflage uncertainties; the assigned probabilities are conditional on a number of assumptions and suppositions, and they depend on the background knowledge. Uncertainties are often hidden in this background knowledge, and restricting attention to the assigned probabilities can camouflage factors that could produce surprising outcomes. By jumping directly into probabilities, important uncertainty aspects are easily truncated, and potential surprises may be left unconsidered.Let us, as an example, consider the risks, seen through the eyes of a risk analyst in the 1970s, associated with future health problems for divers working on offshore petroleum projects. The analyst assigns a value to the probability that a diver would experience health problems (properly defined) during the coming 30 years due to the diving activities. Let us assume that a value of 1 % was assigned, a number based on the knowledge available at that time. There are no strong indications that the divers will experience health problems, but we know today that these probabilities led to poor predictions. Many divers have experienced severe health problems (Avon and Vine, 2007). By restricting risk to the probability assignments alone, important aspects of uncertainty and risk are hidden. There is a lack of understanding about the underlying phenomena, but the probability assignments alone are not able to fully describe this status.Several risk perspectives and definitions have been proposed in line with this realization. For example, Avon (2007a, 2008a) defines risk as the two-dimensional combination of events/consequences and associated uncertainties (will the events occur, what the consequences will be). A closely related perspective is suggested by Avon and Renan (2008a), who define risk associated with an activity as uncertaintyabout and severity of the consequences of the activity, where severity refers to intensity, size, extension, scope and other potential measures of magnitude with respect to something that humans value (lives, the environment, money, etc.). Losses and gains, expressed for example in monetary terms or as the number of fatalities, are ways of defining the severity of the consequences. See also Avon and Christensen (2005).In the case of large uncertainties, risk assessments can support decision-making, but other principles, measures, and instruments are also required, such as the cautionary/precautionary principles as well as robustness and resilience strategies. An informative decision basis is needed, but it should be far more nuanced than can be obtained by a probabilistic analysis alone. This has been stressed by many researchers, e.g. Apostolicism (1990) and Apostolicism and Lemon (2005): qualitative risk analysis (QRA) results are never the sole basis for decision-making. Safety- and security-related decision-making is risk-informed, not risk-based. This conclusion is not, however, justified merely by referring to the need for addressing uncertainties beyond probabilities and expected values. The main issue here is the fact that risks need to be balanced with other concerns.When various solutions and measures are to be compared and a decision is to be made, the analysis and assessments that have been conducted provide a basis for such a decision. In many cases, established design principles and standards provide clear guidance. Compliance with such principles and standards must be among the first reference points when assessing risks. It is common thinking that risk management processes, and especially ALARP processes, require formal guidelines or criteria (e.g., risk acceptance criteria and cost-effectiveness indices) to simplify the decision-making. Care must; however, be shown when using this type of formal decision-making criteria, as they easily result in a mechanization of the decision-making process. Such mechanization is unfortunate because: Decision-making criteria based on risk-related numbers alone (probabilities and expected values) do not capture all the aspects of risk, costs, and benefits, no method has a precision that justifies a mechanical decision based on whether the result is overor below a numerical criterion. It is a managerial responsibility to make decisions under uncertainty, and management should be aware of the relevant risks and uncertainties.Apostolicism and Lemon (2005) adopt a pragmatic approach to risk analysis and risk management, acknowledging the difficulties of determining the probabilities of an attack. Ideally, they would like to implement a risk-informed procedure, based on expected values. However, since such an approach would require the use of probabilities that have not b een “rigorously derived”, they see themselves forced to resort to a more pragmatic approach.This is one possible approach when facing problems of large uncertainties. The risk analyses simply do not provide a sufficiently solid basis for the decision-making process. We argue along the same lines. There is a need for a management review and judgment process. It is necessary to see beyond the computed risk picture in the form of the probabilities and expected values. Traditional quantitative risk analyses fail in this respect. We acknowledge the need for analyzing risk, but question the value added by performing traditional quantitative risk analyses in the case of large uncertainties. The arbitrariness in the numbers produced can be significant, due to the uncertainties in the estimates or as a result of the uncertainty assessments being strongly dependent on the analysts.It should be acknowledged that risk cannot be accurately expressed using probabilities and expected values. A quantitative risk analysis is in many cases better replaced by a more qualitative approach, as shown in the examples above; an approach which may be referred to as a semi-quantitative approach. Quantifying risk using risk indices such as the expected number of fatalities gives an impression that risk can be expressed in a very precise way. However, in most cases, the arbitrariness is large. In a semi-quantitative approach this is acknowledged by providing a more nuanced risk picture, which includes factors that can cause “surprises” r elative to the probabilities and the expected values. Quantification often requires strong simplifications and assumptions and, as a result, important factors could be ignored or given too little (or too much) weight. In a qualitative or semi-quantitative analysis, amore comprehensive risk picture can be established, taking into account underlying factors influencing risk. In contrast to the prevailing use of quantitative risk analyses, the precision level of the risk description is in line with the accuracy of the risk analysis tools. In addition, risk quantification is very resource demanding. One needs to ask whether the resources are used in the best way. We conclude that in many cases more is gained by opening up the way to a broader, more qualitative approach, which allows for considerations beyond the probabilities and expected values.The traditional quantitative risk assessments as seen for example in the nuclear and the oil & gas industries provide a rather narrow risk picture, through calculated probabilities and expected values, and we conclude that this approach should be used with care for problems with large uncertainties. Alternative approaches highlighting the qualitative aspects are more appropriate in such cases. A broad risk description is required. This is also the case in the normative ambiguity situations, as the risk characterizations provide a basis for the risk evaluation processes. The main concern is the value judgments, but they should be supported by solid scientific assessments, showing a broad risk picture. If one tries to demonstrate that it is rational to accept risk, on a scientific basis, too narrow an approach to risk has been adopted. Recognizing uncertainty as a main component of risk is essential to successfully implement risk management, for cases of large uncertainties and normative ambiguity.A risk description should cover computed probabilities and expected values, as well as: Sensitivities showing how the risk indices depend on the background knowledge (assumptions and suppositions); Uncertainty assessments; Description of the background knowledge, including models and data used.The uncertainty assessments should not be restricted to standard probabilistic analysis, as this analysis could hide important uncertainty factors. The search for quantitative, explicit approaches for expressing the uncertainties, even beyond the subjective probabilities, may seem to be a possible way forward. However, such an approach is not recommended. Trying to be precise and to accurately express what is extremely uncertain does not make sense. Instead we recommend a more openqualitative approach to reveal such uncertainties. Some might consider this to be less attractive from a methodological and scientific point of view. Perhaps it is, but it would be more suited for solving the problem at hand, which is about the analysis and management of risk and uncertainties.Source: Terje Aven. 2010. “Risk Management”. Risk in Technological Systems, Oct, p175-198.译文:风险管理本章回顾和讨论风险管理的基本问题和原则,包括:风险可接受性(耐受性)、风险削减和安全风险管理原则、警示和预防原则,并提出了一个研究案例,说明在实际管理环境中这些问题和原则的重要性。
- 1、下载文档前请自行甄别文档内容的完整性,平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益,请联系客服反馈,我们会尽快为您处理(人工客服工作时间:9:00-18:30)。
企业风险管理中英文对照外文翻译文献(文档含英文原文和中文翻译)原文:Risk ManagementThis chapter reviews and discusses the basic issues and principles of risk management, including: risk acceptability (tolerability); risk reduction and the ALARP principle; cautionary and precautionary principles. And presents a case study showing the importance of these issues and principles in a practical management context. Before we take a closer look, let us briefly address some basic features of risk management.The purpose of risk management is to ensure that adequate measures are taken to protect people, the environment, and assets from possible harmful consequences of the activities being undertaken, as well as to balance different concerns, in particular risks and costs. Risk management includes measures both to avoid the hazards and toreduce their potential harm. Traditionally, in industries such as nuclear, oil, and gas, risk management was based on a prescriptive regulating regime, in which detailed requirements were set with regard to the design and operation of the arrangements. This regime has gradually been replaced by a more goal-oriented regime, putting emphasis on what to achieve rather than on the means of achieving it.Risk management is an integral aspect of a goal-oriented regime. It is acknowledged that risk cannot be eliminated but must be managed. There is nowadays an enormous drive and enthusiasm in various industries and in society as a whole to implement risk management in organizations. There are high expectations that risk management is the proper framework through which to achieve high levels of performance.Risk management involves achieving an appropriate balance between realizing opportunities for gain and minimizing losses. It is an integral part of good management practice and an essential element of good corporate governance. It is an iterative process consisting of steps that, when undertaken in sequence, can lead to a continuous improvement in decision-making and facilitate a continuous improvement in performance.To support decision-making regarding design and operation, risk analyses are carried out. They include the identification of hazards and threats, cause analyses, consequence analyses, and risk descriptions. The results are then evaluated. The totality of the analyses and the evaluations are referred to as risk assessments. Risk assessment is followed by risk treatment, which is a process involving the development and implementation of measures to modify the risk, including measures designed to avoid, reduce (“optimize”), transfer, or retain the risk. Risk transfer means sharing with another party the benefit or loss associated with a risk. It is typically affected through insurance. Risk management covers all coordinated activities in the direction and control of an organization with regard to risk.In many enterprises, the risk management tasks are divided into three main categories: strategic risk, financial risk, and operational risk. Strategic risk includes aspects and factors that are important for the e nterprise’s long-term strategy and plans,for example mergers and acquisitions, technology, competition, political conditions, legislation and regulations, and labor market. Financial risk includes the enterprise’s financial situation, and includes: Market risk, associated with the costs of goods and services, foreign exchange rates and securities (shares, bonds, etc.). Credit risk, associated with a debtor’s failure to meet its obligations in accordance with agreed terms. Liquidity risk, reflecting lack of access to cash; the difficulty of selling an asset in a timely manner. Operational risk is related to conditions affecting the normal operating situation: Accidental events, including failures and defects, quality deviations, natural disasters. Intended acts; sabotage, disgruntled employees, etc. Loss of competence, key personnel. Legal circumstances, associated for instance, with defective contracts and liability insurance.For an enterprise to become successful in its implementation of risk management, top management needs to be involved, and activities must be put into effect on many levels. Some important points to ensure success are: the establishment of a strategy for risk management, i.e., the principles of how the enterprise defines and implements risk management. Should one simply follow the regulatory requirements (minimal requirements), or should one be the “best in the class”? The establishment of a risk management process for the enterprise, i.e. formal processes and routines that the enterprise is to follow. The establishment of management structures, with roles and responsibilities, such that the risk analysis process becomes integrated into the organization. The implementation of analyses and support systems, such as risk analysis tools, recording systems for occurrences of various types of events, etc. The communication, training, and development of a risk management culture, so that the competence, understanding, and motivation level within the organization is enhanced. Given the above fundamentals of risk management, the next step is to develop principles and a methodology that can be used in practical decision-making. This is not, however, straightforward. There are a number of challenges and here we address some of these: establishing an informative risk picture for the various decision alternatives, using this risk picture in a decision-making context. Establishing an informative risk picture means identifying appropriate risk indices and assessments ofuncertainties. Using the risk picture in a decision making context means the definition and application of risk acceptance criteria, cost benefit analyses and the ALARP principle, which states that risk should be reduced to a level which is as low as is reasonably practicable.It is common to define and describe risks in terms of probabilities and expected values. This has, however, been challenged, since the probabilities and expected values can camouflage uncertainties; the assigned probabilities are conditional on a number of assumptions and suppositions, and they depend on the background knowledge. Uncertainties are often hidden in this background knowledge, and restricting attention to the assigned probabilities can camouflage factors that could produce surprising outcomes. By jumping directly into probabilities, important uncertainty aspects are easily truncated, and potential surprises may be left unconsidered.Let us, as an example, consider the risks, seen through the eyes of a risk analyst in the 1970s, associated with future health problems for divers working on offshore petroleum projects. The analyst assigns a value to the probability that a diver would experience health problems (properly defined) during the coming 30 years due to the diving activities. Let us assume that a value of 1 % was assigned, a number based on the knowledge available at that time. There are no strong indications that the divers will experience health problems, but we know today that these probabilities led to poor predictions. Many divers have experienced severe health problems (Avon and Vine, 2007). By restricting risk to the probability assignments alone, important aspects of uncertainty and risk are hidden. There is a lack of understanding about the underlying phenomena, but the probability assignments alone are not able to fully describe this status.Several risk perspectives and definitions have been proposed in line with this realization. For example, Avon (2007a, 2008a) defines risk as the two-dimensional combination of events/consequences and associated uncertainties (will the events occur, what the consequences will be). A closely related perspective is suggested by Avon and Renan (2008a), who define risk associated with an activity as uncertaintyabout and severity of the consequences of the activity, where severity refers to intensity, size, extension, scope and other potential measures of magnitude with respect to something that humans value (lives, the environment, money, etc.). Losses and gains, expressed for example in monetary terms or as the number of fatalities, are ways of defining the severity of the consequences. See also Avon and Christensen (2005).In the case of large uncertainties, risk assessments can support decision-making, but other principles, measures, and instruments are also required, such as the cautionary/precautionary principles as well as robustness and resilience strategies. An informative decision basis is needed, but it should be far more nuanced than can be obtained by a probabilistic analysis alone. This has been stressed by many researchers, e.g. Apostolicism (1990) and Apostolicism and Lemon (2005): qualitative risk analysis (QRA) results are never the sole basis for decision-making. Safety- and security-related decision-making is risk-informed, not risk-based. This conclusion is not, however, justified merely by referring to the need for addressing uncertainties beyond probabilities and expected values. The main issue here is the fact that risks need to be balanced with other concerns.When various solutions and measures are to be compared and a decision is to be made, the analysis and assessments that have been conducted provide a basis for such a decision. In many cases, established design principles and standards provide clear guidance. Compliance with such principles and standards must be among the first reference points when assessing risks. It is common thinking that risk management processes, and especially ALARP processes, require formal guidelines or criteria (e.g., risk acceptance criteria and cost-effectiveness indices) to simplify the decision-making. Care must; however, be shown when using this type of formal decision-making criteria, as they easily result in a mechanization of the decision-making process. Such mechanization is unfortunate because: Decision-making criteria based on risk-related numbers alone (probabilities and expected values) do not capture all the aspects of risk, costs, and benefits, no method has a precision that justifies a mechanical decision based on whether the result is overor below a numerical criterion. It is a managerial responsibility to make decisions under uncertainty, and management should be aware of the relevant risks and uncertainties.Apostolicism and Lemon (2005) adopt a pragmatic approach to risk analysis and risk management, acknowledging the difficulties of determining the probabilities of an attack. Ideally, they would like to implement a risk-informed procedure, based on expected values. However, since such an approach would require the use of probabilities that have not b een “rigorously derived”, they see themselves forced to resort to a more pragmatic approach.This is one possible approach when facing problems of large uncertainties. The risk analyses simply do not provide a sufficiently solid basis for the decision-making process. We argue along the same lines. There is a need for a management review and judgment process. It is necessary to see beyond the computed risk picture in the form of the probabilities and expected values. Traditional quantitative risk analyses fail in this respect. We acknowledge the need for analyzing risk, but question the value added by performing traditional quantitative risk analyses in the case of large uncertainties. The arbitrariness in the numbers produced can be significant, due to the uncertainties in the estimates or as a result of the uncertainty assessments being strongly dependent on the analysts.It should be acknowledged that risk cannot be accurately expressed using probabilities and expected values. A quantitative risk analysis is in many cases better replaced by a more qualitative approach, as shown in the examples above; an approach which may be referred to as a semi-quantitative approach. Quantifying risk using risk indices such as the expected number of fatalities gives an impression that risk can be expressed in a very precise way. However, in most cases, the arbitrariness is large. In a semi-quantitative approach this is acknowledged by providing a more nuanced risk picture, which includes factors that can cause “surprises” r elative to the probabilities and the expected values. Quantification often requires strong simplifications and assumptions and, as a result, important factors could be ignored or given too little (or too much) weight. In a qualitative or semi-quantitative analysis, amore comprehensive risk picture can be established, taking into account underlying factors influencing risk. In contrast to the prevailing use of quantitative risk analyses, the precision level of the risk description is in line with the accuracy of the risk analysis tools. In addition, risk quantification is very resource demanding. One needs to ask whether the resources are used in the best way. We conclude that in many cases more is gained by opening up the way to a broader, more qualitative approach, which allows for considerations beyond the probabilities and expected values.The traditional quantitative risk assessments as seen for example in the nuclear and the oil & gas industries provide a rather narrow risk picture, through calculated probabilities and expected values, and we conclude that this approach should be used with care for problems with large uncertainties. Alternative approaches highlighting the qualitative aspects are more appropriate in such cases. A broad risk description is required. This is also the case in the normative ambiguity situations, as the risk characterizations provide a basis for the risk evaluation processes. The main concern is the value judgments, but they should be supported by solid scientific assessments, showing a broad risk picture. If one tries to demonstrate that it is rational to accept risk, on a scientific basis, too narrow an approach to risk has been adopted. Recognizing uncertainty as a main component of risk is essential to successfully implement risk management, for cases of large uncertainties and normative ambiguity.A risk description should cover computed probabilities and expected values, as well as: Sensitivities showing how the risk indices depend on the background knowledge (assumptions and suppositions); Uncertainty assessments; Description of the background knowledge, including models and data used.The uncertainty assessments should not be restricted to standard probabilistic analysis, as this analysis could hide important uncertainty factors. The search for quantitative, explicit approaches for expressing the uncertainties, even beyond the subjective probabilities, may seem to be a possible way forward. However, such an approach is not recommended. Trying to be precise and to accurately express what is extremely uncertain does not make sense. Instead we recommend a more openqualitative approach to reveal such uncertainties. Some might consider this to be less attractive from a methodological and scientific point of view. Perhaps it is, but it would be more suited for solving the problem at hand, which is about the analysis and management of risk and uncertainties.Source: Terje Aven. 2010. “Risk Management”. Risk in Technological Systems, Oct, p175-198.译文:风险管理本章回顾和讨论风险管理的基本问题和原则,包括:风险可接受性(耐受性)、风险削减和安全风险管理原则、警示和预防原则,并提出了一个研究案例,说明在实际管理环境中这些问题和原则的重要性。