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ERM - Enterprise Risk Management: Issues and Cases
book

ERM - Enterprise Risk Management: Issues and Cases

by Christopher Ketcham, Jean-Paul Louisot
June 2014
Intermediate to advanced
280 pages
10h 47m
English
Wiley
Content preview from ERM - Enterprise Risk Management: Issues and Cases

7 Case Study: Risk Management Implementation in China

Duojia (Doug) Lu

Chairman, First Huida Risk Management, Beijing, China

Risk management has been developing fast in the People's Republic of China in recent years. This article gives an overview of the Chinese market for risk management, highlights some of the prominent recent developments in the market, and presents a couple of cases of risk management implementation, which are typically seen in this field.

7.1 MARKET BACKGROUND

It is well known that China is a large country with a big market. As of recent statistics, China's population is over 1.3 billion people. China also has a large business community. In 2012, there were about 11 million registered for-profit companies in China, and about 36 million registered sole proprietors. By 2012, more than 2,300 Chinese companies were listed in domestic stock exchanges in Shanghai and Shenzhen along with a couple of hundred Chinese companies listed overseas.

China has a vibrant economy. Over the last twenty years, China's economic growth has averaged an annual growth rate of 9.8%, triple the world average. Right now China is the second largest economy in the world with an RMB1 51.9 trillion ($8.33 trillion dollar) GDP. China's economy is especially heavy in manufacturing, which accounts for 45% of GDP (2012) and produces anything from cars and machinery to airplanes and electronics. For example, in 2012, China produced over 19 million cars and light trucks, and sold about the ...

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Publisher Resources

ISBN: 9781118539514Purchase book