Research On Financial Risk Evaluation And Risk Prevention Methods For Xi'an M Group

The complicated economic environment in today's society makes the daily operations of enterprises face great uncertainty.On the one hand,social progress makes various types of macro policies or environmental optimization and brings more opportunities for enterprises.On the other hand,opportunities and challenges will coexist.The increase in opportunities will increase the internal and external changes in the company,and the risks faced by enterprises will also be greatly increased.The financial risks exist objectively in all aspects of the company's production and operation.The timely and effective identification and prevention of the company's financial risks will help the company's long-term and stable development.With the rapid development of Internet technology,a variety of consumption methods came into being to a large extent hindered the survival of the entity's traditional retail industry.Due to the impact of the macroeconomic recession,the slowdown in retail sales has made the competition in various channels fierce.The e-commerce squeezing effect on e-commerce by real-time e-commerce is still very prominent.As a result,the physical retail market is facing relatively large pressures for transformation.Under the downward trend of the industry,it is particularly important to identify,evaluate and prevent financial risks of traditional retail enterprises.Finding risks in a timely manner and taking effective measures can prevent companies from falling into operating difficulties.Therefore,this paper attempts to build a financial evaluation model based on Xi'an M Group's financial status and analyze it.This thesis takes Xi'an M Group as the background of the case,first describes the related concepts and theoretical basis of financial risk,and then analyzes Xi'an M Group's financial status,identifies the financial risks faced by the Group,and discusses the reasons for the existing financial risks of Xi'an M Group.Secondly,it discusses the construction principles of the financial risk evaluation index system,and constructs a financial risk evaluation system by screening indicators and optimizing the efficiency coefficient method.Based on a well-established system model,Xi'an M Group will perform financial risk assessment and analysis.According to the financial data analysis of its annual financial report 2014-2016,the financial risks of Xi'an M Group froM 2014 to 2016 were moderate early-warning,moderate early-warning,and mild early-warning,respectively.Then use the Wang Fujing companies in the industry to verify the effectiveness of the risk assessment system,indica ting that this evaluation system can be applied to traditional retail industry companies.Finally,specific measures for preventing financial risks were proposed.