How to control risk in a competitive market

At present, including our engineering machinery and other domestic market products in China, the competition has reached a hot stage. However, in the process of severe competitive market competition (magnetic separator), how to control the risk? How far can an enterprise develop? The development strategy, development mode as well as the risk controlling all determine the future of an enterprise. The characteristics of the three necessary stages that an enterprise must go through: first, the stage of industrialization. When the stage of industrialization accumulates to a certain degree, it is bound to go through a scale stage, when it has gotten to a certain scale, considered as holding one of the best strategic positions in the country, then the enterprise is going to step out of the domestic market into the world. Therefore, it is a must to implement the globalization strategy.

According to these three distinct development stages that enterprises face, the fixed thinking of risk management is not enough to cope with it. During the industrialization development stage, the risk appearing in an enterprise’s development process is actually guided by the fiscal control. The feature at this stage is quite obvious, so in this process, it must not go wrong if the legal risks can be properly handled; after the enterprise developed into this stage, the risks increase, at this stage, it is important to be aware of the significance of how to control the development strategy, but the point is how to control it? We have no choice but to realize a comprehensive risk management for the enterprise, which underlines the financial control. At the scale stage, risk management and control basically lie in the construction of risk systematization, while at the stage of globalization, it must introduce an overall management and control concept of the risk. 

Second, in the process of development, the development mode is presented by the development strategy. During the entire merger stuff, our merger bodies are different, the development history of the merger enterprises is different, and so are their backgrounds. In the process of merger, the development strategy plays a critical part. During the developing process, their ability to integrate the resources, ability to utilize or ability to match resources are of great vitality. 

Third, in the process of development, it is important to establish a risk-controlling culture, especially the inner one. We call it the soft environment for the development of an enterprise.