A Study on Risk Controlling in Virtual Enterprise

With requirements and opportunities changing rapidly, the enterprises have to cope with many risks in order to survive in the increasingly competitive global market. Virtual enterprise (VE) is emerging in recent years. But there are too many risks in VEs' construction and operation. VEs are urged to make further efforts to strengthen risk management. Risk identifying and risk controlling are the key factors for the virtual enterprises (VEs). The artical analyzes the risks of VEs which should be seriously treated. These risks include investment strategic risk, management and cooperation risk, moral hazard and market risk. In this article, risk control mechanism is put forward to overcome cooperation barriers from trust among participating enterprises, reduce market uncertainty and enhance the level of investment strategy.