Good morning, ladies and gentlemen, it's a great pleasure to have you all come to our presentation. My name is Wolf .I am from Germany. I am the consultant of International Consulting Company. Before starting this presentation, I would like to talk something about our agenda. Now, please look at the powerpoint. I have divided the presentation into eight parts: Firstly, we will analyze the past of the global economy in order to see the future. Secondly, I will introduce a perfect theory which is called Enterprise Risk Management. Thirdly, we will talk about the Strategic Management Approach. Fourthly, I will introduce something about treatment of risks and risk components. And you can know the types of risks in the next part. What’s more, I will analyze some experiences about ERM in the west and in China. I'll introduce a case study to help you understand this topic later. At last, if you have any question, please let me know after this presentation.
Now, let's start with the first part. As we all known, multinational corporations follow the logic: Going global is not to gain profit but rather to survive. You know, survive is the first priority. Without subsistence, there would be no basis for any and all issues. If companies go global they will lose money in a first step and they will face huge and unknown risks.
Based on this situation, we should know the Rule 1: Going global is not an easy task and it costs big money before it achieves their ultimate purpose. Exporters or investors should get ready to face the risks because foreign markets always react contrary to their expectations.
Today, the global world is not the big eat the small. The truth is: the fast eat the
slow. Here ,I would like to share a story with you. In African grassland, there exist tiger family and antelope family. In the early morning of everyday, both the tiger mother and the antelope mother will lead their groups run away at the same time. The tigers want to eat the antelope while the antelopes try to escape to avoid being eaten. Just like the old saying ,“Survival of the fittest.”We call this “the tigers and the antelope regression”
For a company, the management is a very important and even necessary part. And which Management Theory can support the company? We should realise the following points and keep them in mind. There are some preconditions: this theory must be approved. It must offer an integrated approach and must be advanced. What’s more, it must have no contradiction to other approved theories. Meanwhile, this theory must include communication systems and must be based on modern management tools.
I think the Enterprise Risk Management Theory is a perfect solution. It follows the concept of the Traditional Chinese Medicine. In the ERM theory, a company is regarded like a human being including its body, soul, brain .And all of them are interdependent and are also closely related to each other .I t is a matrix management approach which helps to steer the complexity of the global business world.
