Research On Financial Risk Controlling Of N&Q

With the deepening of supply-side structural reform in our country,the idea of cutting excessive industrial capacity,destocking and deleveraging has gone into many industries.However,in recent years,more and more companies have not paid much attention to the effective control of financial risk,resulting in high levels of debt and poor profitability.The number of such businesses has not been significantly reduced recently,but is growing,especially in the low-threshold,highly competitive fashion industry.Therefore,it is important to keep financial risk under control in a changing economic environment.This paper,based on the N&Q's case study and combined with the theoretical research and practical methods,checks the corporate financial risk control.First,from financial risk definition and basic theory,then through the comparative methods to analysis the company's industry average and industry benchmarking enterprise's solvency,profitability,operation ability from 2010 to 2015,we find that the company is facing the following financial risks:(1)The debt paying ability is poor,resulting in high funding risk;(2)Slow capital turnover and low operating capacity;(3)Blind expansion and declining profitability.Then,based on analytic hierarchy process,we try to evaluate the financial risk profile of the company in 2015,and we find the financial risk status of the company was very serious in 2015.Next,after further study on the company's existing financial risk control scheme,we find the problems including:(1)The financial risk control process is not complete,thus failing to timely find the risk;(2)The choice of capital structure is not reasonable,thus causing the financial leverage negative effect;(3)Lack of comprehensive investment analysis mechanism,which leads to the insufficient growth of the company.(4)Lack of reasonable accounting policies,thus causing the inefficient use of funds.There is a need to optimize the financial risk control organization,perfect the financial risk early warning system,perfect the financial budget system,perfect the financing risk control measures,improve the investment risk control system,improve the risk control of working capital,and so on.Finally,we put forward the security measures including establishing the comprehensive financial risk management system,improving the staff incentive system.This paper's aim is not only to provide a financial risk control optimization for the N&Q,in order to promote the better development,but also to provide the financial risk control plan for the other clothing enterprises and even other industries.Furthermore,this paper also provides some useful suggestions on how to control the financial risk.