Research On Financial Risk Control Of SH Company

As a basic industry in China,the chemical industry is widely used in all aspects of social production and life.It is an important pillar for the survival and development of the national economy.However,in recent years,the chemical industry is facing severe challenges,such as fierce market competition,overall depression of the industry,sluggish main business,etc.with the supply side structural reform and the introduction of environmental protection policies,the raw material prices of chemical enterprises have increased,the environmental protection tax burden has increased,and the pollution control cost has increased significantly.If the problem of financial risk is not solved in time,it will hinder the healthy development of enterprises.This paper combs the relevant literature of financial risk at home and abroad,combined with the relevant theories of financial risk,takes SH company as the research object,and makes an in-depth study on its financial risk.Firstly,this paper introduces the basic situation of SH company,analyzes the financial situation of SH company from the aspects of assets,liabilities and profits and losses,and identifies the financial risk of SH company from five aspects: solvency risk,profitability risk,operating capacity risk,development capacity risk and cash flow risk.It is found that the financial situation of SH company is not optimistic.Secondly,the factor analysis method is used to evaluate the financial risk of SH company.The results show that the company has certain financial risks in the above five aspects,among which the risk of solvency and development ability is greater.Thirdly,combined with the results of financial risk identification and evaluation,this paper analyzes the reasons for the financial risk of SH company,including the shrinkage of its main business and the overall decline of the industry,high costs and improper control,single financing structure and large debt scale,unscientific investment decision-making,unreasonable asset structure and poor asset quality.Finally,according to the reasons of SH company’s financial risk,this paper puts forward corresponding financial risk control measures,including adhering to green production,seeking transformation and upgrading,tapping internal potential,reducing cost and increasing efficiency,broadening financing channels,planning debt scale,strengthening investment management,reducing investment risk,optimizing asset structure and strengthening asset management.The research of this paper provides a reference for enterprises in financial risk,and helps enterprises reduce financial risk and economic loss.