Study On Multinational E-commerce Comany A's Financial Risk Management And Control

The development of e-commerce has brought huge benefits to our economy and society.Trading sales for China e-commerce industry in 2016 has reached 22970 billion yuan,with an increase of 25.5%of last year.Trading sales for B2B e-commerce accounts for 16700 billion yuan,and the amount for online retail sales is 5300 billion yuan.Different with traditional trading model,the newly developed e-commerce model has brought challenges to current financial risk management system.The traditional commerce is a face-to-face trading,with simpler process but lack of efficiency.Facing with simpler environment,financial risk management is easier for the traditional commerce.Whereas,the new e-commerce model involves huge bunch of information technologies in the trading process,which decreases manual control and improves efficiency,but means more challenges in its financial risk management.Multinational e-commerce companies,running e-commerce business around the world,being exposed to complicated and changeful environment,are more likely to encounter financial risks than normal companies.Thus the financial risk management for the multinational e-commerce companies is particularly important.This essay will start from the study of relevant theories of financial risk management and control.Firstly,the essay will summarize and analyze relevant theories of risk and financial risk,including the definition and features of risk,key processes for corporate risk management,the definition and sources of financial risk and key steps for financial risk management and control;furthermore,it will cover a summary of current studies of financial risk management in China and other countries.Secondly,based on the theories and findings in the previous section,the essay will use questionnaire survey towards experienced experts to identify world famous multinational e-commerce company A's important financial risk factors,and then it will apply analytic hierarchy process method to organize an analytic hierarchy structure with three levels for those factors recognized,to assess and quantify their significance and weights,and to summarize and sort the factors based on their significance towards Company A's financial management and control.At last,the essay will propose possible suggestions and solutions towards these financial risk factors respectively based on the analysis above,and it will also cover overall advices regarding Company A's financial risk management and control.The essay adopts analytic hierarchy process method to identify,quantify and assess the financial risk factors for multinational e-commerce company A and proposes applicable suggestions,which enriches the study and research of financial risk management and control of e-commerce industry,and has certain value for the future study of financial risk management and control for multinational e-commerce companies.