Identifying And Controlling Financial Risks Of Enterprises Under Diversified Operation

In the early 20 th century,the strategic mode of diversification began to appear in western capitalist countries.Some enterprises make more profits because of their good production and operation,so they choose to expand into other business areas,hoping to spread the risk of professional operation,strengthen their own strength,and pursue more investment returns.However,since the 1980 s,this mode of diversified operation has gradually exposed a series of disadvantages,and a large number of enterprises failed or even went bankrupt.It is particularly important to identify the financial risks of an enterprise in the context of diversification,because diversification requires more vigilance against financial risks than specialized operations.Therefore,in order to enhance the value of enterprise diversification,corresponding control measures should be proposed on the basis of identifying enterprise financial risks.First of all,based on the literature review of diversified operation,this paper summarizes the research situation of diversified operation and financial risks,and analyzes the formation mechanism of financial risks faced by enterprises under diversified operation from a theoretical perspective.Then,by analyzing the advantages and disadvantages of existing methods to measure the degree of diversification and identify financial risks,the methods suitable for diversified enterprises to identify financial risks are selected.Finally,this paper uses the herfindahl index to measure the degree of enterprise diversification,and uses the analytic hierarchy process and the efficiency coefficient method to identify the financial risks of new hope group under the two-stage diversification mode from 2011 to 2013 and 2014 to 2017 from the perspective of financing,investment and operational risks.At the same time,yili group as a new hope group vertical comparative case enterprise,the following conclusions are drawn.First,compared with specialized enterprises,the strategic mode of diversified operation of enterprises will increase the level of financial risks,which may lead to higher financial risks for enterprises.Second,with the deepening of diversification,the risk level of enterprises will continue to rise,and there is a high level of financial risk.Third,under the mode of diversified operation,compared with the investment risk and operational risk,the enterprise's financing risk is more affected.Enterprises should pay more attention to the change of debt structure,scale and maturity in diversification.Fourth,enterprises are not required to conduct completely specialized operations.As long as the financial risks faced by enterprises are effectively identified and controlled within an acceptable range,diversified operations will still bring considerable effectiveness to enterprises.The contribution of this paper is that compared with previous studies,it considers more horizontal and vertical comparison of diversification,and can reflect the level of risk in diversification more intuitively and evaluate it more intuitively.