Research On Financial Risk Management Of Jingtai Foreign Trade Company

With the deepening of economic reform in China, enterprises are facing morerisks. Financial risk refers to the enterprise management, the specific financialofficers unable to repay their interest in the process of financial management of funds,unable to pay the costs in all areas of finance, investment, working capital and relatedfinancing, corporate financial management is not will help the enterprises to carry outthe relevant risk factors. Enterprises to effectively carry out the financing, investment,operating and capital activities, necessarily involves the issue of financialmanagement, there are also fiscal risk, if the company’s financial mismanagement willhave a negative risk, would seriously jeopardize the financing of enterprises,investment, operation activities have a negative impact to businesses, shareholders,investors and social.First, the the Jingtai foreign trade company’s financial risk evaluation, the Jingtaiforeign trade company capital structure is irrational, the debt ratio is too high,financing risk; weak the Jingtai foreign investment project profitability, investmentrisk; the the Jingtai foreign trade company’s inventory turnover, accounts receivableturnover ratio and liquidity asset turnover higher, lower business risks, but there is anupward trend.Then, the article mainly from external factors and internal factors on the Jingtaiforeign trade company’s financial risk causes analysis. The impact of the Jingtaiforeign trade companies, financial risk from external causes including the impact ofthe economic environment of uncertainty, the impact of foreign trade policy,exchange rate changes and financial market opening derive more financial risk. Theinternal factors are mainly the internal control environment, saying the financialmanagement of internal control is not perfect, and compliance management a mereformality, control, risk capacity limitations, lack of financial decision-making andscientific.Finally, on this basis, according to the specific reality of the the Jingtai foreigntrade development, the paper proposes specific measures the Jingtai foreign tradecompanies to prevent financial risk: the establishment of a dedicated internal auditcommittee; preventing and controlling the risk of financing; both inside and outside,to strengthen the management of accounts receivable; multi-pronged approach to prevention and control of the exchange rate risk; risk prevention and control of theuse of funds.