Identification And Response Of Fund Activity Risk

Global financial crisis happened at 2008,and the global economic was weakness,so a large number of Chinese enterprises encountered business problems,such as improper financing decision-making,business investment decision mistakes,unreasonable funding.Many companies have a financial crisis at that time.So how to identify the risk of funds,to find the reasons for financial risks and put forward the corresponding solutions become the academic and practical issues of concern.The use of financial analysis to identify the risk of financial activities and find a response to the strategy in the market economy has a wide range of applications,but research in China is not put into use,so I build the financial risk monitoring system,and see Changhong company as a key research object,intending to build a set of theoretical and practical risk prevention methods.My paper chooses the financial activities of Changhong Company as the key research object,and uses the financial analysis to identify and deal with the risk of financial activities.Firstly,this paper reviews the literature review of fund risk identification and coping from domestic and foreign scholars.Secondly,after introducing basic situation of Changhong Company briefly,my paper summarizes the management mode of Changhong financial activities from three aspects:the external environment,business model and funds management situation.Then compared with operating data of the Hisense,Konka,TCL,Midea,and Qingdao Haier for longitudinal comparison,with Changhong company 2011-2015 financial data for horizontal comparison to identify the financial activities of the risk,namely,unreasonable working capital schedule unreasonable capital structure and low investment efficiency.After finding these risk points,we analyze the essential reasons of the risk from the three aspects of working capital risk,financing risk and investment risk,namely,the product is not marketable,the credit policy is too loose,the"interest-free loan" is ineffective and the economy downstream pressure,financial subsidies policy changed,the deucedly pursuit of diversification strategy led to the weak core competitiveness and enterprise did not play a low cost advantage.From the three aspects to prevent the risk of Changhong financial activities,namely:understand consumer demand,then broaden product sales;set up sound communication mechanism,then adjust production plans timely;set up credit policies reasonably to improve the efficiency of working capital;establish loyal partnership to improve the utilization of "accounts payable";master the core manufacturing technology,then enhance the channels of upstream procurement;strengthen the external economic analysis and forecast,then conform to the development of the situation;change the sales model of large customers,then build an integrated marketing model for production and marketing;establish and improve the financing risk monitoring mechanism to identify and deal with risks;integrate the core competitiveness of enterprises and expand the field with high correlation;in the diversified development,play a low cost advantage.Finally,my paper summarizes the causes of financial risk that Changhong may face,and make appropriate recommendations according to the actual situation.