Dagukou Chemical Co., Ltd. M&A Enterprise Management Model

Hubei Province's 2010 Business Management Modernization Innovation Achievement Award was announced recently. The management innovation of Hubei Dagukou Chemical Co., Ltd. was awarded “The Construction and Practice of Internal Control Management System with Grouping, Systematization, Standardization, and Risk Management and Control as Guidance”. second prize. It is understood that after the company was acquired by China Petroleum & Chemical Corporation, through the launch of internal control and risk management projects, it has achieved its own management level and accelerated its integration into the CNOOC family.
Hubei Dagukou Chemical Co., Ltd. is a new merger company of China Shipping Chemical. Due to historical reasons, there are significant differences in the culture and management concepts of M&A firms and acquired firms. In order to narrow the gap and integrate it into the CNOOC family as soon as possible, the company launched internal control and risk management projects. The newly built internal control management system adheres to systematization and standardization, and the content is divided into two parts: the main part and the auxiliary part. The main part mainly stipulates the division of basic rights of the company, management requirements and business operations. The auxiliary part includes auxiliary standards such as work standards, technical standards, risk control points and business form templates.
So far, the company has established a total of 88 business authorizations for optimization, improved 24 department work standards (responsibilities), optimized 204 management systems (including management methods and detailed rules), established 77 HSE systems, and sorted out 256 business processes. There are 933 key control points corresponding to business processes. A series of measures have promoted the company's institutional counterparts and business counterparts with CNOOC and China Shipping Chemical. Risk control has been effectively controlled, corporate culture has been effectively integrated, and it has been praised as a model for internal control and risk management of M&A companies.

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