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Centrally-administered SOEs urged to reinforce risk management

(Xinhua)
Updated: 2008-11-14 11:42

China has urged its centrally-administered State-owned Enterprises (SOEs) to reinforce their overall risk management in the mid of global financial crises.

The State-owned Assets supervision and Administration Commission of the State Council (SASAC) said in an announcement on Thursday that it has become increasingly urgent for SOEs to step up their risk management, when the financial turmoil triggered by the US subprime crisis kept deepening.

The managing executives of SOEs should take responsibility in working out concrete measures in risk management, said the announcement. It also encourages the companies to report their risk management condition to the commission.

The SASAC urges centrally-administered SOEs to solve existing problems in business operation and improve its internal control system, which refers to a reasonable organization structure, people and work flow of the company.

SASAC ordered that a risk control management system should be set up in such company groups as China National Petroleum Corporation.