The Research Onfunds Risk Management Strategy In Automobile Company

The vehicle manufacturing company in the automotive industry haslong value chain and belongs to cyclical industry, with high requirementof return rate for capital investment. The requirement for safety of cashflow is a practical challenge. It is imperative that the company identifiesappropriate risk management strategy to enhance funds utilizationefficiency and effectiveness and apply effective risk management plans tosolve company's financial and treasury risks.The thesis focuses on vehicle production and sales company andapplies the mature risk management and financial theory by a series ofrisk responses and through coordinated response initiatives,recommendations and action plans to improve and optimize company'scash flow.The thesis provides some revelation that a highly efficient and safecash flow management shall have the fundamental characteristics ofadaptability, flexibility and scalability. The policies and practicesembedded shall be balancing, forward-looking and holistic in thedynamics of development and growth. Through this mentality andimplementation, the company will control the risk under its appetite andincrease its value to shareholders.