BEIJING, May 31 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, the first Chinese consulting firm listed in Hong Kong, releases its recent research report on Energy Enterprises' Comprehensive Risk Management in China. With a history of follow-up research on the energy field and accumulated rich practical consulting experiences, CCID Consulting has also formed its own profound understanding and ideas about the comprehensive risk management field. In the report, CCID Consulting presents a thorough examination of the motives and actual status of comprehensive risk management in the energy industry both at home and abroad, reviews the demand in comprehensive risk management in the industry and forecasts the future development trend. The report will exhibit to energy enterprises the framework and practical roadmap for comprehensive risk management.
The risks which face energy enterprises in China at different levels include: policy and legal risks, macroeconomic risks, financial services risks, natural environmental risks, social risks, market risks, operational risks, technological risks, strategy risks etc.
China's energy industry is characterized by the duality of financial services and is closely connected with the macro economy. As China's market-oriented economic reforms gather pace, energy supply will be eventually determined by the market. Market changes and market complexity are the major risks in the energy industry. Energy market risks are mainly characterized by: price risks, liquidity risks, credit exposure and wrong holdings. The factors that affect energy price are extremely complicated, including natural disasters, economic growth, population, energy reserves, financial services operations, environmental policies, political factors and so on. Fluctuations in energy price present a tremendous challenge for energy enterprises to undertake risk management. Liquidity risks are mainly the risks resulting from problems with stocks, receivable accounts and funds turnover. Credit exposure is the offsetting of enterprises' profits due to credit losses. Wrong holdings are losses caused by imbalanced market supply. Energy market risks involve great intensity, complicated factors and fast destruction. Traditional risk point measurement and manual data report form procedures can no longer meet the requirements of modern risk management.
In addition, risks resulting from enterprises' own operations and management are also one of the main risks facing energy enterprises. These include failed project management, major accidents and low operational efficiency. In particular, major accidents pose fatal threats to enterprises.
In the past few years, a series of standards and bills concerning risk management have been introduced both at home and abroad. Enterprises' risk management awareness have been affected by the SOX Act and the COSO Risk Management Framework in the United States and the corporate governance guidelines of the various stock exchanges in Europe. For Chinese energy enterprises, the greatest influence comes from the SOX Act and the Comprehensive Risk Management Guide for Central Enterprises issued by the State-owned Asset Supervision and Administration Commission. Leading energy enterprises in the oil industry have started to introduce internal control systems and build their comprehensive risk management. They are the pioneers which progress through explorations. These include CNPC's COSO internal control system and CNOOC's IT internal control system. As power system reforms continue to deepen and coal industry regulation is gradually standardized, comprehensive risk management will no doubt become a logic trend in the energy industry.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
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