Risk Assessment, Cash Flow Stability and Budgeting Control Institutionalization: Field Study from Listed Company in China

摘要

In recent, Enterprise Risk Management (ERM) has widespread applied, and has been increasingly codified into some regulatory, corporate governance and management control system of listed corporations in China. This paper presents field study evidence from three listed company, and suggests that the cases illustrate four risk management ideal procedures and shows how they form the integrated risk management in budgeting control institutionalization (BCI) in keeping cash flow stability for a given company. Further, this paper shows that using budgeting control approach can support to the risk management in cash flow, and explores how BCI achieved the effect risk management in the cases. Finally, this study summarizes four propositions on cash flow stability and integrated BCI and ERM, in order to keep the stability of cash flow with the lowest working capital and the optimal return for a given company.