| Summary: | 碩士 === 東吳大學 === 會計學系 === 98 === The high-tech advances of information and communication help the market forming the trend of globalization economy. The fast-growing of IT pushes the trend of economic globalization. The importance of multinational enterprises is increasing, and they as a critical role position in global market competition. In contrast, the multinational enterprises face the various uncertain risks because of the different jurisdictions from host country laws and industrial environments. The most important thing of multinational cross-brand chain is protecting the goodwill of its brand, it is including reduces uncertainty risks damage to the goodwill of its brand.
The integrated risk management was defined in 2004 in accordance with the COSO committee released the “Enterprise Risk Management-Integrated Framework “. The definition of the enterprise risk management is “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”
The “Enterprise Risk Management-Integrated Framework” contains of eight interrelated components ：“Internal Environment”、“Objective Setting”、“Event Identification”、“Risk Assessment”、“Risk Response”、“Control Activities”、“Information and Communication”、“Monitoring”. Enterprise risk management enables management to deal with uncertainty risk within its risk appetite effectively. This enterprise risk management framework provide reasonable assurance the achievement of the entity’s objectives： including “Strategic”、“Operations”、 “ Reporting”、 “Compliance”.
Because of COSO integrated framework should have influence on achieving enterprise objectives significantly by execution of the above mentioned components. Therefore, this research focused on enterprise risk management implementation and effectiveness and reviewed multinational cross-brand chain enterprise on risk management by case study.
The purposes of this research discussed the effective of enterprise risk management and analyze the integrated framework execution and effectiveness from both overall headquarters level and overseas subsidiaries level. The result of this research found out that whether global headquarters can identify the risks of overseas investment. On the other side, the case study on overseas subsidiary implementation of the integrated framework can provide applied risk management in overseas subsidiaries.
The main result of this research is the risk management framework of COSO can help the overseas subsidiaries of cross-brand chain recognize factors of risk they face. This research analyze the execution of “event identification”、“risk assessment”、“risk response”、“control activities” and found out the framework helps overseas subsidiaries to response the risk effectively. This research also found the component of “information and communication” impacted the effectiveness of risk resopnse. In the case of this research also found the operational cost control is more important than sales growth by on marketing activities and the numbers of stores.
In addition,in “information and communication”、and “monitoring” components of COSO framework, this research analyzed the overall headquarter identify the potential risks of overseas investment is according to the information from overseas subsidiaries executed enterprise risk management. This research found the framework of COSO can help overall headquarter of cross-brand chain with identification of the potential risks of overseas investments. But even overall headquarter recognized the factors of risk, headquarter still asked overseas subsidiaries response the risk under the risk management framework. The result of this research found that the monitor, one of the component in framework, caused the communication and information gap between overall headquarter and overseas subsidiary. Even that, the overall headquarter still can manage the risk within its risk appetite.
This research finding can provide Taiwan brand-chain with implementation of risk management experience to originate its brand and forming multination cross-brand chain. The “Enterprise Risk Management-Integrated Framework “ of COSO provided enterprise to set up the framework of risk management. This framework can help overseas subsidiaries applied risk management, and also help global headquarters to identify the risks of overseas investments and manage risk within its risk appetite.
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