Research On Financial Risk Management Under CH Company Diversification Strategy

Under the background of market economy reform,more and more enterprises in our country are showing diversified development and management.Especially for listing,diversified management strategy is one of the important strategies in the development process.As the main power source to promote the rapid economic development in our country,listed companies are playing a huge role in changing the mode of economic development,increasing the speed of economic development,improving the level of economic technology and accelerating the process of economic internationalization.In recent years,listed companies have adopted a diversified expansion strategy of "one industry first,multi-industry simultaneously" through merger and acquisition activities.Diversification has become the trend of many listed companies and has achieved certain development results.However,the adoption of diversified strategy by enterprises brings economic benefits to enterprises while also bringing certain financial risks to enterprises.To a certain extent,it affects the effect of diversified management of enterprises and seriously threatens the development of enterprises,so it is of great significance to study the financial risk management under the diversification strategy of enterprises.The financial risks that diversification strategies bring to different companies may be different,how should companies control financial risks on the path of diversification strategies? How can diversified enterprises,which have alreadygenerated financial risks,save themselves? These are the problems that diversified enterprises urgently need to solve in practice.In order to solve the above problems,this paper diversified private listed companies-CH company for example,CH company’s diversification process can be divided into chemical industry,chemical industry and logistics industry coexist but chemical industry is the leading industry,chemical industry and logistics industry coexist but logistics is the leading industry of the three stages,The diversification strategy of the analysis of CH company is representative.In describing the financial risk management problem of CH company under the diversification strategy,this paper constructs the COSO-ERM theoretical framework of financial risk management under the multi-strategy,analyzes the problems existing in CH company according to the main content of the theoretical framework,and focuses on the relevant financial data in the company’s 2010-2018 financial report.Calculating the three major indicators and Z values to measure CH company’s debt service,profitability and operation,and combining with CH’s diversification process,a specific analysis was made,in order to compare the differences between CH companies and the same industry in the above indicators,to understand the location of CH company related indicators in the same industry,Another six companies in the same industry were selected for comparative analysis.The problems of diversified financial management of THE company at this stage,mainly from the CH company’s organizational structure,diversified selection time,blind expansion,financial risk management mechanism,financial personnel risk management ability,financial information quality and other six aspects of the analysis of the causes of the problem,the paper put forward the CH company’s diversification strategy under the financial management countermeasures,In order to help CH company and other listed companies in the implementation of diversification strategy to reduce financial risks,to achieve healthy and stable development.The possible contribution of this paper is based on the perspective of the COSO-ERM theoretical framework,in-depth analysis of the causes of financial risk management problems.