Case Study On WZ Company’s Financial Risk Management

At present,the overall slowdown in domestic economic growth,economic development into the new normal background,the overall flow of goods industry operating downturn.WZ company as the industry’s top list of large state-owned holding company,its business situation is very representative.Financial risk as one of the risks faced by the business process,if not do the appropriate management work,may directly lead to the company’s capital chain break,unable to obtain the necessary resources for continuing operations.Once the enterprise cannot get the necessary resources to maintain business activities,the company may be a great closure.China’s state-owned enterprises because of its ownership’s nature of the special properties,how to ensure that enterprises in the current changing market and policy environment to survive,is a basic requirement for the state-owned enterprises to control financial risk.At the same time,commodity circulation enterprises as a lubricant for the supply chain,plays a key role in supporting,and its healthy operation for the entire supply chain is of great significance.Therefore,the discussion on the financial risk management of state-owned commodity circulation enterprises has special significance in the process of transition of Chinese enterprises and economy.In this paper,the case study of WZ company’s financial risk and management of the status quo and found that due to the external economy,the policy environment and its own operating principles,organizational structure and other aspects of the impact,WZ company is currently facing the financial The risks are mainly liquidity risk,financing risk and investment risk.Based on the view of system theory,this paper introduces the current financial risk management system,and then studies the five aspects of financial risk objectives,risk identification,risk assessment,risk response and control activities respectively.Finally,in order to improve the organizational structure,strengthen the budget management,strengthen the personnel education and improve the enterprise system,the author puts forward the corresponding suggestions to improve the financial risk management system of WZ company and other products for the existing risk management of WZ company Circulation enterprises to provide reference.