The Improvement Program On Financial Risk Management Of Baoxin Energy

With such pressures as the deepening of economic globalization,the rapid development of China's economy,continuous deepening of supply-side reforms by thermal power companies in the power industry,the overall easing of power supply and demand across the country,continuous decline in utilization hours of thermal power units,the speeding pace of power market reform,difficulty in financing and the like,companies inevitably face more potential financial risks.Most of China's enterprises,however,pay less attention to financial risk management,resulting in a general problem of poor awareness of risks.Whereas financial risk management is an indispensable part of enterprise risk management,thus,good management of financial risks is vital to the survival and development of an enterprise.This article takes Guangdong Baolihua New Energy Stock Company as the research object.Firstly,based on the background of the topic and the significance of the research,to determine specific research methods and research ideas by categorizing and summarizing relevant domestic and foreign related literature.Secondly,combined with the relevant theories of corporate financial risk management,to demonstrate the current situation of the company's financial risk management from such three dimensions as Baoxin Energy's internal management environment of financial risk,financial risk prevention and response,and financial risk supervision.At the meantime,using financial statement analysis and other methods to conduct a comprehensive and systematic analysis of the financial risks faced by Baoxin Energy,and the F-score model to assess the financial risk situation.Furthermore,combined with the questionnaire survey to further discover the problems of its financial risk management,including incomplete structure of financial risk governance,the lack of independent internal auditing,non-establishment of an effective warning mechanism for financial risks,high financing costs,irregular management on investment risks,inadequate budget execution and cost management,imperfect cash flow monitoring system and budget management.By doing so,to analyze the mentioned problems.Finally,in regard of the existing problems,to propose the corresponding improvement plan for financial risk management,and to provide the relative safeguard measures.The research on Baoxin Energy's improvement plan for financial risk management will help to improve its financial risk management and reduce the probability of financial risks.This will not only have practical guidance for its financial risk management,but also provide a certain reference for the companies in the same situation.