Research On Financial Risk Management Of Metersbonwe Co.Ltd. Based On Risk Management

As China’s economic system from the planned economy to the market economy, more and more enterprises to participate in market competition. This makes the market competition faced by enterprises is becoming increasingly fierce, on the other hand,along with economic globalization, today’s society is changing day by day and the market environment is also changing day by day, these all makes the enterprise’s production and business activities face more and more uncertain factors and These will finally and undoubtedly increase the financial risks which enterprises face. However, financial risks is an objective existence, therefore enterprises can’t avoid it and must face it and take effective measures to reduce the likelihood of financial risk, so enterprises can achieve sustainable development in the future.Since entering the 21st century, our garment industry has developed rapidly and more and more enterprises enter into the industry, which also includes many well-known foreign companies, This ultimately led to the gradual saturation and fierce competition of the domestic garment market. At the same time the domestic economy began to downstream and weak consumer spending coupled with rising production costs have greatly increased the financial risk faced by garment enterprises. Among these enterprises, Metersbonwe Co.Ltd’s financial risk problem is particularly prominent So I chose Metersbonwe Co.Ltd as a case study to study its financial risk management. It not only can compensate for the lack of financial risk management application research, but also has a very important practical significance for the clothing enterprises which are facing great financial risks to get rid of their financial difficulties to achieve sustained and healthy development.On the basis of combing the theory of financial risk management, I start from the present situation of the financial risk management of Metersbonwe Co.Ltd and based on the risk management process, first identify financial risks of Metersbonwe Co.Ltd from both internal and external environment:in the external environment, there is a risk of the economic environment and industry risks and in the internal environment Metersbonwe Co.Ltd have these risk liabilities is too large, capital structure is not reasonable, solvency is relatively weak, existing inventory management performance evaluation method loopholes, revenues decreased, inventory valuation loss increased, Lack of development potential and so on. Then I constructed a Metersbonwe Co.Ltd’s financial risk eassessmen system to assessment the identified financial risk and the evaluation results show the financial risks face by Metersbonwe Co.Ltd increased year by year. Lastly I puts forward the corresponding risk control measures to identify the financial risks, such as adapt to changes in the external environment, Increase R & D expenditure, optimize the capital structure, strengthen supply chain management, building a new performance evaluation system of inventory management, Increase product promotion, improve products economic, adopt diversification strategy. I hope that through this study can provide new ideas for financial risk management of Metersbonwe Co.Ltd and garment enterprises which have similar problems to enable them to get rid of financial difficulties in order to achieve sustainable and healthy development and achieve sustained and healthy development.