Risk management will play a big role in how smoothly China integrates itself into the World Trade Organization, which the country plans to enter in 2001, said James Lam, founder and vice chairman of eRisk. Speaking Friday at the International Conference on Financial Globalization and Risk Management in Beijing, Mr. Lam called enterprise risk management a "public- and private-sector imperative for post-WTO China. Mr. Lam said adopting enterprise risk management standards would promote self-regulation and risk transparency, and establish other regulatory safeguards among Chinas financial industries. He also warned that failure to manage risk both on the company and regional level could lead to "financial disasters on the order of Barings, Kidder and Daiwa. "Meanwhile, the Asia economic crisis and the Russian debt default reminded us all of the interdependencies of global economies and the threat of systemic risks, Mr. Lam said. "China needs more effective capital markets mechanisms to ensure the free flow of capital into good businesses and out of bad ones.