September. 2005

                                               http://www.china-investigation.com

As the Regional Director of CII, the President of Steele’s will be invited to attend the annual conference of the association in September in Lisbon , Portugal and will discuss the development of the industry and association with other directors.

The President of Steele accepted the interview of <Wall Street Journal> on August 9, 2005 and introduced the development of the investigation industry in China .

A new column has been set up on Steele’s homepage: “Professional Training”, which introduces the details of our trainings hold in the recent two years and you are welcome to the new website to learn more about our training service: http://www.china-investigation.com/english/training.htm.

At the end of July, the President of Steele had a meeting in Hilton Hotel with Mr. Jeremy Gordon, the president of a consulting company in U.K. and the two discussed their cooperation and development in a pleasant atmosphere.

Haikou Municipal Credit Association of Small and Middle-sized Enterprises has come into existence on August 12, 2005, which organized by Haikou Municipal Government and Hainan Branch of National Development Bank. The mission of the Association includes training and normalizing enterprises, establishing the new financing channel for small and middle-sized enterprises, creating the credit platform. The highlight is the Association will provide financing assistance for member enterprises by cooperating with Hainan Branch of National Development Bank

<The Administration Measure of Zhejiang Enterprises’ Credit Information Collection and issuance> will come into effect since September 1, 2005, and accordingly Zhejiang Province will set up an integrated enterprises credit database, which will cover the credit information of all enterprises.

<The 2^nd Management Status Quo Investigation of Human Resource of Chinese Enterprises> will be started up on August 8, 2005, which organized by China Human Resource Development Network, Sina, China Operation Newspaper, Qianlong, and other medias. 

On August 2, 2005, ING-Capital Life Insurance Company (ING-Cap) announced that Shenyang Company of ING-Cap has been incorporated, which is the first joint venture life insurance company allowed to Shenyang market. Its Shenyang Company will do business in due form at the end of this year, and will provide various insurance products to consumers including individual life insurance, casualty insurance, healthcare insurance, and so on. 

Seven Issues in Enterprise Risk Management

As we all know, risk management is a very important subject for all companies. When facing the risks coming from the operation, what we should do at first is to identify the type of the risk and accordingly choose the effective countermeasures. Nowadays there mainly exist seven types of risks surrounding us:

Type A: Investment Risk refers to the improper investment resulting in the low profit or even depreciation. Before making the investment decision impetuously, please let the project go through a severe but scientific evaluation process conducted together by all the related departments and a special project evaluation team. 

Type B: Commercial Contract Risk refers to the risks occurs during the implementation of a commercial contract, which is brought by one side’s breach or force majeure. So the necessary articles of the obligations and compensation are indispensable. Meanwhile please always keep an eye on the other side’s performance. 

Type C: Marketing Risk refers to the status that the product is devaluated or unsalable because of the changing of the market. The detailed causes are various, including the stagnation of the whole market, the wrong marketing plan, fast development of the new substituting products, the strike of the imported products and such.

Type D: Inventory Risk refers to the depreciation of the inventory caused by the price fall, the outdated fashion, the natural wastage or other damage. The right way is to dispose the storage right away and at the same time pay attention to the control of the investment, procurement, output and keeping. Never ever hold the old products because afraid of the decrease of the profit. 

Type E: Liability Risk refers to the loss brought by the unbearable liability or the improper management of the borrowed capital. Therefore the control of the liability ratio is necessary.

Type F: Guarantee Risk refers to the liability brought by a guarantee made for another company, which eventually loses its ability to pay the related debt. So the best way is to make a counter guarantee after a severe audit procedure of the original guarantee.

Type G: Exchange Rate Risk refers to the loss caused during import or export trade by the change of the exchange rate. Please always keep an eye on the foreign currency liability and the change of the exchange rate. Accordingly based on the updated information about the exchange, you may take the effective measure at any moment.

No. 1：Remind yourself that “money doesn’t grow on trees”

No. 2: Protect your personal information and remember the bank phones

in common use by heart

No. 3: Know fairly well about new applied bank functions

No. 4: Distinguish the secure website by your piercing eyes

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