Research On Financial Fisk Assessment And Control Of Bayi Iron And Steel Company

In recent years,with the acceleration of economic globalization and the rapid development of China’s socialist market economy,Chinese enterprises are also in rapid transformation and development.In this context,the risk factors faced by enterprises are also increasing,which requires enterprises to update the risk management mode in time,and the management of financial risk is the weakness of many enterprises.The iron and steel industry plays an important role in China’s industrial enterprises,but also in the construction of people’s infrastructure.But in recent years,the development of China’s iron and steel industry is not optimistic,many enterprises still have many problems,which leads to the increasing financial risk of the iron and steel industry.Although the grim situation in the steel industry has been alleviated with the support of relevant national policies,its fundamental problems have not been completely solved,and it still faces great challenges.This paper takes Bayi Iron and steel company as a typical case.First of all,on the basis of reading the relevant literature of financial risk at home and abroad,this paper expounds the definition of financial risk and related theories,and initially forms the understanding of financial risk evaluation and control.Then combined with the financial data of the company in the past six years,the problems and causes of the financial risks of the company are identified from three aspects of financing risk,investment risk and operation risk.It is found that the company has a single financing channel,poor solvency,weak profitability,excessive investment in physical assets,unscientific and inefficient management methods of inventory and accounts receivable And so on.After analyzing the shortcomings of the company’s current risk assessment system,this paper constructs a financial risk assessment model.First,it evaluates the relevant financial indicators of Bayi Iron and steel company from 2014 to the third quarter of 2019 one by one by using the analytic hierarchy process.The results show that the biggest impact on the company’s financial risk is its investment risk,followed by business risk,and finally the financing risk.Then the efficiency coefficient method is used to evaluate the financial risk evaluation results under the AHP.The comprehensive evaluation results show that the financial risk of the company is in the area of serious alarm.Next,the following suggestions are put forward for the company’s existing control measures:in terms of financing,we should broaden the financing channels and change the financing methods;make a reasonable repayment plan to improve the solvency;in terms of investment,we should simplify the investment scale of physical assets,develop core technology and develop downstream industry chain extension business;in terms of operational risk,we should improve the inventory management level and lower the credit threshold appropriately.It is hoped that this study can provide some thoughts and suggestions for the practical problems of Bayi Iron and steel company.