Jiangsu Yueda Group Financial Risk Management Research

Prevention and control of enterprise’s financial risk is the basis for enterprise survivaland development. However, because of the multiplier legal person’s organizationalstructure’s characteristic of the enterprise group, it made more complex to control theenterprise group’s financial risk than common enterprise. Especially in2008, after thefinacial crisis, the position of finacial risk prevention in the enterprise group has becomemore and more important. Therefore, to analyze enterprise group’s finacial risk by usingscientific methods and to propose specific solutions is very important for businessdevelopment.In this paper, I started my study from the basic theory of enterprise group’s financialrisk management, describing the definitions of enterprise group’s financial risk managementfirst, combines with the main current risk analysis, evaluation and internal control theoryand methods. Second, I conducted a comprehensive analysis on financial risk of JiangsuYueda Group, through the combination of quantitative and qualitative methods, by makinguse of the main data and financial indicators of Jiangsu Yueda Group, and then, I gave anevaluation of financial indicators at base of the analysis. At the same time, I analysedfinancial risk of Jiangsu Yueda Group from inside and outside respects. Third, based onCOSO risk management framework and basic standard for enterprise internal control ofChina, I built the financial risk management framework that including three gradations andseven elements, oriented the strategic target of enterprise group’s finance risk management.Finally, to against the financial risk of Jiangsu Yueda Group, I describe the implementationof financial risk management frame respectively, from gradations of target, management andbase. Though this conclusion is drawn for Jiangsu Yueda Group, but it also provided somereference for the financial risk management to the groups in the growth stage.