LeTV's Financial Risk And Coping Strategy Research

In the process of business operation,business operators will continue to face many financial risks,which will have a very important impact on the survival and development of enterprises.Therefore,this paper stands in the perspective of financial risk and coping strategies,and selects LeTV as a case study.Today's domestic and international economic situation is relatively tight,the traditional industry is developing slowly,but the Internet industry has opened up a new situation.In order to properly cope with the complex economic environment and fierce corporate competition,we must pay attention to the importance of dealing with financial risks.This paper selects LeTV,which is very representative in the Internet industry and has high attention,as the object of case analysis.Based on the analysis of the company's organizational structure,industry background,financial status and other factors,we find out the financial risks that LeTV is currently facing,namely,debt repayment risk,cost control risk,operational risk and expansion risk.And use the financial risk early warning model to analyze the financial risk of LeEco.Finally,the main reasons for the formation of LeTV's financial risk were summarized.First,the blind expansion of enterprises,the layout of the "LeTV's Ecosystem" is too large.Second,the capital structure is irrational and the debt is excessive.,copyright protection has led to a rapid increase in industry costs.Fourth,there is a lack of risk management tools.Fifth,management lost faith in the public.In view of the main financial risks of LeTV and the reasons for its formation,this paper proposes countermeasures from three perspectives of finance,operation and management.First,from a financial point of view,the asset-liability ratio should be lowered and cost control should be carried out.Second,from a business perspective,the business structure and financing methods should be optimized.Finally,from a management perspective,it is necessary to improve the quality of decision-making,strengthen financial risk management and internal control,andoptimize the enterprise management system.When proposing to optimize the enterprise management system,this paper innovatively proposes to use the introduction of the “separation of three powers” to decentralize the management's high centralization;and to use the monitoring mechanism to constrain the management.In addition,the idea of establishing a popular financial management method and strengthening the professional learning of non-professional management is proposed to help managers make more professional judgments when conducting management.It is hoped that these measures will provide certain reference value for the industry and reduce the financial risks of enterprises.