2.Basic theory and technical methods of risk management

This chapter compared the industry condition of coal at home and abroad,and pointed out the problems of Chinese coal production.Then the work analyzed recent industry policies and development strategies.On this basis,the whole situation of Chinese coal enterprises was summarized and analyzed,as well as their achievements of equity structure in corporate governance.Meanwhile,the chapter also analyzed various types of coal enterprises reorganization,with summarization of their characteristics.Therefore,the research objects were clarified for following analysis of reorganization results.

Coal is the primary element in energy structure of China,still consisting of abundant coal,insufficient oil and scarce gas.Recently,renewable energy sources,such as nuclear,wind and water power,have thrived,but with little coverage.To the contrast,the reserves abundance,supply security and clean combustion of coal ensure its long and stable leading position.The energy structure based on coal is still inevitable for China.However,there are various problems in Chinese coal production.For example,the working environments in underground mines are dangerous with natural disasters.Besides,there are still many coal mines with outdated technologies,poor managements and unskilled employees.Moreover,it is popular to illegally mine and abuse production in small coal mines.In addition,the underlying problems of coal production have not been solved yet.It is urgent for coal enterprises to manage production risks effectively,and the intrinsic production safety is basis of their sustainable development.According to Mu Qingguo(2004),safety referred to a state process that the potential harm to life,property and environment was lower than the maximum endurance of people.In this sense,safety and risk management are interrelated.Intrinsic production safety requires advanced risk management mechanism,system,theory and method.Thus,studies about risk management theories and methods are of great urgency and significance in coal production.The basic theory of risk management is needed for reference,thus this chapter started with relevant accident causing theory in risk management.