Foton Financial Risk Identification And Control

The automobile manufacturing industry is an important industry of China’s national economy.It represents the level of productivity of China to a certain extent.Its foundation is the production of parts and components,and the core is the production of complete vehicles.The entire industry has a long industrial chain and a wide range of radiation-upstream extends to parts manufacturing and procurement,involving other manufacturing sectors such as met all urgy,electronies,and chemicals;downstream extends to related logisties services,maintenance services,and financialservices.Therefore,it is particularly important to study and analyze the management control of automobile manufacturing risks.Among the many risks,financial risk is the core of risk control-analysing the existing or potential financial risks of the company,accelerating the company’s turn over,and improving the company’s profitability,so as to promote the steady development of China’s national economy.This paper firstly combs the relevant theories of financial risk from the basic concepts of financial risk and the management of financial risk.In the aspect of the basic concept of financial risk,it mainly introduces the meaning,classification and causes of risk.In the aspect of financial risk manage ment,it mainly introduces the identification,evaluation and control of risks.Secondly,by analyzi ng the background of the automobile manufacturing industry,sorting out the development status and industry characteristics of the automotive industry,and summarizing the financial risks of the industry,mainly including external risks and internal risks.And introduced the research object of this articl e-Foton,a brief introduction and analysis of the company’s current business process and financial status.Thirdly,starting from the fourth chapter,this paper takes further risk identification and risk assessment for the financial risks of Foton.Based on the previous industry background,Foton business and its financial status,financial indicators are selected from the four aspects of financing,investment,operation and income distribution,and the financial risks ofFoton are identified by comparing the horizontal and vertical indicators.Identify the causes of financial risks.Secondly,this paper quantifies the financial risk to objectively evaluate the financial risk of Foton.This paper selects 12 specific financialindicators from the four as pects of financing,investment,operation and income distribution and builds a hierarchical analysis model.Then,by distributing questionnaires to experts,these risks and indicators are compared in pairs to determine the weight of each indicator.Then,the existing weight sare combined with the power fact or method to quantify the financial risks of Foton,and compared with the financial risk classification issued by the central government to judge the current operating status of the company.Finally,based on the previous research,the financial risks of Foton propose seven corresponding control measures from four as pectst opromote the company out of financial difficulties.This paper expects Foton to be a spedficres earch object,analyzes the financial risks of Foton under the industrial transformation and upgrading,and provides some reference for the risk management of the whole industry,which makes China’s automobile manufacturing industry develop healthily.