Research Of Suning's Financial Risk Management In E-Commerce Context

With the development of e-commerce,the traditional retail industry has been unprecedent edly impacted,and many retail enterprises have realized that only through comprehensive tran sformation can they survive in the competition.One problem that traditional retail industry ha s to face is how to maintain its advantages and follow the trend in the meantime.Since the fina ncial risk is inevitable during the transformation,to take necessary measures in controlling fina ncial risk is the key to a successful transition and the cornerstone of corporates' survival and de velopment.This paper starts by discussing Suning's case.Based on fundamental theories of financia 1 risk management,we have summarized a series of common types of financial risk.Through t he analysis of Suning's financial data,we identified the underlying financial risks in the proces s of Suning's business transformation.These financial risks fall into four categorizes:funding r isks,investment risks,recovery risks,and other risks.In accordance with the company s curren t situation,and found that the major causes to financial risks are massive short-term debts an d unreasonable debt structure.we adpoted Analytic Hierarchy Process and the efficiency coeffi cient method in assessing the financial risks in transformation,Large capital input during the tr ansition process has had Suning's financial situation worsened;the company failed to realize it s expected rate of return and development capacity.We hereby propose an effective solution t o Suning's business transformation in terms of funding,investment,recovery,and other financi al risks.It can provide some reference for enterprises similar to Suning.