Research On Financial Risk Evaluation Of HG Group Based On Analytic Hierarchy Process

With the rapid development of China's economy,all walks of life are becoming saturated,and competition between enterprises is becoming increasingly fierce,which has caused many enterprises to increase the risk of financial crisis or even bankruptcy because they cannot bear the pressure of market competition.If an enterprise wants to survive and develop,it must pay attention to the harm caused by financial risks to the enterprise in its daily management activities.Predicting in advance which links are prone to financial risks,and how to effectively identify financial risks before they are transformed into crises is a difficult issue for companies.This is even more true for the steel industry.The iron and steel industry is a cyclical industry,closely related to the direction of macroeconomic policies,and the macroeconomics is complex and changeable and difficult to predict.In addition,steel prices fluctuate sharply,falling rapidly,and demand changes rapidly.At the same time,the main source of income for the steel industry is the sale of steel.The cost of steel is significantly affected by raw materials,iron ore,and the input-output cycle is long.In the low period of the industry cycle,the flexibility of scale adjustment is small,and the difficulty of determining the turning point of the cycle is also relatively large.These are factors that may cause financial risks.The steel industry occupies a decisive position in the national economy.Steel companies have a large demand for funds.There are many uncertain factors and complex factors.Once financial risks occur,they will have a relatively large impact on China's economic development.Therefore,Financial risk assessment in the steel industry is particularly important.Based on the theoretical basis of financial risk management,referring to domestic and foreign scholars' literature,this paper selects HG Group as the research object,and finds and analyzes the financial indicators that may have risks from its financial statements for analysis and evaluation.Finally,it proposes a series of targeted Response suggestions.The research of HG Group's financial risk evaluation is divided into seven parts.The first part is an introduction.Based on the global macroeconomic background and the HG Group's own situation,this article introduces the research background and significance of this article.It summarizes the current status of domestic and foreign scholars' research on financial risk evaluation systems in recent years.Research content and methods used and innovations.This chapter mainly explains why it is necessary to study the HG Group with AHP.The second part mainly introduces related concepts and theories.This part first introduces the meaning and types of financial risk,and then describes the meaning and main methods of financial risk evaluation,and gives an overview of the advantages and disadvantages of each method.The third part is an overview of the HG Group and an analysis of its financial risks.First,the basic situation of the HG Group is introduced from the company's main achievements and main business income.Then use the traditional financial statement analysis method to analyze the financial risks of the HG Group,and identify the financial risks of the HG Group based on the evaluation method,and systematically analyze the current status of the HG Group's current financial risk evaluation.The risk points are further compared with industry average data,and provide a reference for the selection of indicators in the model below.The fourth part is the construction of the HG Group financial evaluation model based on the analytic hierarchy process.The analytic hierarchy process is used to analyze the basic financial status of the HG Group,and the indicators that may cause financial risks are identified.Among the financial indicators,there are mainly four In the aspect,12 financial risk indicators were selected.Among the non-financial indicators,6 financial risk indicators were selected from 2 aspects.These 18 indicators were integrated into a comprehensive financial risk evaluation indicator system to determine the weight value of each indicator.The fifth part is the analysis of HG Group's financial risk assessment.This chapter is based on the indicator weights calculated in Chapter 4.Based on the Standard Value of Enterprise Performance Evaluation,the HG Group's financial indicators for 2018 are quantified and the efficacy coefficient method is used.The HG Group's financial and non-financial indicators are scored to obtain an evaluation coefficient,and they are analyzed according to the risk level classification criteria.The sixth part is the HG Group's financial risk control recommendations.Based on the results calculated in Chapter 5,the HG Group is found to have financial risks.At the same time,it provides targeted opinions to help the HG Group effectively control financial risks and ensure its long-term stability.Contribute to development.The seventh part is the summary and prospect.This part mainly summarizes the content of the entire research,and at the same time elaborates the shortcomings of the entire research and looks forward.The innovation of the article is mainly manifested in two aspects.The first-level analysis method is mainly applied to the real estate industry at the present stage,but it is less applicable to the steel industry.Considering that the steel industry and the real estate industry are both pillar industries of the national economy,there are similarities in business management models.Use;Second,additional non-financial indicators have been added to the conventional financial indicator analysis system,making the entire system more complete and persuasive.