| With the rapid development of China’s automobile industry, the automobilefinance is developing gradually, and plays an important role in the economy. FAWAuto Finance Co. Ltd. was established by the cooperation of the domesticwell-known automobile enterprises and bank, it’s birth represents a milepost of thedevelopment of Chinese automobile industry, the company’s development and growthhas an important significance for the development of China automotive industry inthe depth of field. The management level and management level of the company alsorepresents the development level of Chinese auto finance in a certain extent. For suchan enterprise, the risk control is very important, and the financial risk is the core of allkinds of enterprise risks. The company should continue to enhance its own businessstrength, improve the ability to resist risks and cultivate the sustainable growth ofprofitability, and set a good brand image as well. The research of the corporatefinancial risk control has an important strategic significance.Financial risk exists in every link of enterprise management, its management andcontrol is crucial to the survival and development of enterprises. This paper studythe financial risk of FAW Auto Finance Co. Ltd. from various financing, investment,capital operation, liquidity and other aspects, at the same time, it checks thefinancial risk control point inspection of the company from the practical point ofview, which found that the company is facing a higher debt risk and assetmanagement risk, at the same time the company has potential financial risk in termsof profitability, the reason is that the existence of a certain degree between businessdivorced adjustment and market strategies. The deeper reason is the companymanagement in the financial risk is the lack of the necessary system, process,personnel and monitoring mechanism, failed to effectively match in the process ofdevelopment of all aspects of resources, all these cause the company isn’t reacttimely itself when suffers the financial risk. In this paper, the author through systematicly analysis of FAW Auto Finance Co.Ltd. financial risk control system problems, put forward to improve the company’sfinancial risk control system and process of the proposed system. Specifically, thecompany shall further improve the system and work flow of funds management,budget management and other related work, and formulate feasible operation manualto guide the practical work. At the same time this paper suggested the companylaunched a comprehensive budget management measure to strengthen the financialmanagement and control efforts, and for the company to design a set of financial riskearly warning index system. This paper advises the company to establish a financialrisk early warning mechanism and according to the actual situation of regularmonitoring reports to help the company to further improve in financial riskmanagement and strength the financial risk control ability.In order to help the FAW Auto Finance Co. Ltd. build a better control in thefinancial risk, it is recommended that the company should has the plan to have thestep to improve its financial risk management and control system, and suggested setup adoption of measures in system security, personnel security, system security andother aspects, it also supplemented with a variety of training and incentive measures,and allocate necessary resources and power, to strengthen the financial risk controlability. At the same time, it also plays an important part in comprehensive riskmanagement system construction of the company. It is suggested that the companyearnestly do a good job of financial risk management and strength financial riskcontrol efforts, enhance their ability to resist all kinds of financial crisis, and makesure that make progress while maintaining stability, establish a good brand image inChinese automobile financial industry and promote the development of this industry. |
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