Key words: nonferrous metals; risk assessment; risk management
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Part 2 Introduction of China Railway Resources Company
The parent company of China Railway Group Co., Ltd. is a large central enterprise directly under the management of the State-owned Assets Management Committee s - China Railway Co., Ltd. exclusively set up by China Railway Engineering Corporation, ranking 95 in the list of world's top 500 enterprises in
"Fortune" published in 2011.
China Railway Resources Group Co., Ltd. was established by China Railway Co., Ltd., China Railway Resources Limited was registered and established on June 25, 2008, which was reorganized as China Railway Resources Group Co.in May 2009. The current registered capital is 3 billion yuan, with headquartered in Haidian District, Beijing. Up to now, China Railway Resources Group Co., Ltd. has a total of 24 wholly-owned, holding and shareholding companies within and without the borders,three offices and two branches. China Railway Resources Group Co., Ltd. is
mainly engaged in domestic and foreign mineral resources investment and development, the current mineral varieties are mainly coal, copper, cobalt, gold, molybdenum and so on. The company's business scope includes: precious metals, nonferrous metals, ferrous metals and non-metallic resources such as mining, sales;
warehousing services; domestic and foreign natural resources development of technical research, technical advice, exploration and design; cargo import and export;
construction general contracting; project investment.
China Railway Resources Group Co., Ltd. established a management level composed of shareholders (exercising shareholders' responsibilities), board of directors, board of supervisors and managers according to the corporate governance
structure of modern enterprises, and introduced external directors, external supervisors and staff supervisors. As the main body of China's iron resources business
sector, China Railway Resources Group Co., Ltd. adheres to the enterprise spirit of
"Have the courage to cross, with the pursuit of excellence" of China Railway Co., Ltd., pioneering and innovative, determined to make progress, efforts to achieve the strategic objectives of "China Railway" in the country and global resources field.
Part 3 Trade Risk Analysis of China Railway Resources
139 3.1.2 Procurement risk
Procurement risk usually refers to some unexpected situations that may occur in the procurement process, including human risk, economic risk and natural risk.
Specifically, if the procurement forecast is not accurate to meet the production requirements or exceed the budget, capacity decline of the supplier group leading to not timely supply, the goods do not meet the order requirements, dull material increases, procurement staff work errors or dishonest or even illegal behavior between suppliers. These conditions will affect the achievement of the expected objectives of the procurement.
3.1.3 Operational risk
Operational risk management, The so-called operational risk refers to in the course of business operation, due to the complexity and variability of external environment and the limited cognitive ability and adaptability of the main body, resulting in operational failure or likelihood of operational activities fail to achieve the desired goal and its loss. Operational risk does not refer to a specific specific risk, but rather contains a series of specific risks. Operational risk and Compliance Committee assists the Executive Committee and the Board to jointly monitor the establishment of a good operational risk framework and monitor the Group's operational risk profile.
3.1.4 Sales risk
Sales risk refers to the changes of sales environment bring the various losses to sales activities. The change in the marketing environment is absolute, objective, and often occurs, and thus in the marketing process, it is full of sales opportunities, while there will be many sales risk. As a result, salespeople should be good at analyzing the risks that may arise from environmental changes, discovering risks and avoiding risks in a timely manner, minimizing losses that they may suffer.
In the process of selling goods, environmental changes are likely to produce opportunities, and it may bring risks. Risk is the possibility of difficult to achieve a certain purpose due to losses brought by changes in the objective environment.
3.1.5 Financial risk
Financial risk refers to the risk that as the unreasonable financial structure of the company and improper financing may lead the company lose solvency then leading investors to decline in expected earnings. Financial risk is a real problem that enterprises must face in the process of financial management,which is objective.
Enterprise managers have only taken effective measures to reduce the risk to financial risk, and can not completely eliminate the risk.
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