Research On The Financial Risk Control Of Steel Foreign Trade Enterprises Based On Financial Analysis

The 13th Five-Year-Plan kicks off in 2016 when China has become a big export-driven country with export-oriented economy and its foreign trade scale has taken the lead in the world.In this critical period,China’s "New Normal" economy brings new opportunities and challenges.The steel industry is regarded as the pillar of economy in China,while under the new situation it’s faced with excess capacity,rising costs,trade friction,foreign exchange fluctuation and many other problems.Hence,it is currently core subject to be researched that how to identify and control the financial risk of the enterprise in the complicated and changing international environment.GM Company is a mature one with more than 10 year experience in international trade,whose main business covers steel products.For years since GM Company was founded,it was far ahead of peers in terms of operational benefit.But in recent years,along with the tide of reshuffle within steel industry,GM Company also confronts unprecedented operating pressure.Although GM Company has promoted its sound development in performance and avoided influence from financial risks by making timely,effective decisions,it still suffers losses more or less by sudden factors.Thus,only when the foreign trade enterprise grasps the key points in control of financial risk can its "Go Global"strategy go even further.This paper takes financial risk control of steel foreign trade enterprise as the main line and GM Company as a case for further discussion.The article introduces Harvard Analytical Framework,as is applied to analyze GM Company comprehensively from four perspectives including its strategies,accounting,finance,and prospects.In the analysis,which combines description of industrial environment and relevant policies with summary of the company’s data and system,several types of financial risk presented are encountered mainly in supply chain,cash flow,and investment decision-making of GM Company.Then,as to financial risk control,this article puts forward concrete countermeasures from the point of internal control,financial process,and strategic development.Finally the author summarizes and makes prospects for the whole thesis.Of the viewpoints in this part,many will have reference value for the financial risk control,as well as certain significance for deepening and practice of them.