Research On Enterprise Financial Risk Management And Control Of X Steel Company

On the occasion of the "13th Five-Year Plan",China has been vigorously promoting the supply side reform policy,intensifying the implementary degree of overcapacity-cutting policy in the steel enterprises,and outlawing a large number of steel enterprises.However,as one of the national pillar industries,the development of the steel enterprises affects the competition of national economic power.Faced with the recovery period of the slow-growing economic,the problem of the steel enterprises' overcapacity is particularly prominent.Besides,the irrational structure of steel industries,the ever-increasing cost of upstream raw materials,the slow recovering of downstream steel prices and the sharp contradiction between supply and demand,etc.are all increase the enterprises' financial risk,which seriously affect the development of the steel enterprises and there was even a negative development around the entire industry in 2015.Therefore,it is necessary to deeply analyze the financial risk of the steel enterprises and seek effective financial risk control measures.This paper is divided into six parts,the first part is the introduction,which mainly introduces the research background,research purpose and significance of the research study taking X steel company as the research object,and comprehensively reviews the research results of financial risk and risk management of domestic and foreign scholars,then briefly summarizes the contents,methods and innovations of this research.The second part elaborates the definition of financial risk,the theory of financial risk management and financial risk control,which are the theoretical basis of this paper.The third part briefly introduces the general situation of X steel company,analyzes the current situation of its financial risk from four aspects combining with its financial situation,: financing risk,investment risk,business risk and market risk,and analyzes the main influencing factors of financial risk of each category of X steel company in detail.The fourth part uses the factor analysis method,and forms the financial risk evaluation index system of X steel company considering its financial risk characteristics,which includes 17 financial risk evaluation indexes of five aspects.Through factor analysis of the sample data,constructing financial risk assessment model of X steel company,and comprehensively analyzes and evaluates the enterprise financial risk.In the fifth part,the author puts forward some suggestions on how to control the financial risks of X steel company in view of every aspect of financial risk in this company.The sixth part is an overview of the conclusions,and at the same time expounds the shortcomings and future prospects of this paper.Through the study of the financial risk of X steel company,this paper will help the development of X steel company,and provide some referential value for other enterprises in the steel industry.