Research On Financial Risk Management Of Pharmaceutical Manufacturing Group

In recent years,domestic macro environment has been particularly challenging for the pharmaceutical industry.Drug manufacturers are continually being squeezed to lower prices by the State-imposed price control and new drug classification policies.The pressure on margins intensified with the “restricted sales” of prescription drugs.In addition,drug advertising is constantly under strict supervision by the Authority,which stifles marketing and promotion schemes of pharmaceutical manufactures.If pharmaceutical manufacturers want to maintain stable production and continue expansion in today's ruthless market,they must improve their ability to mitigate financial risks.This article takes Pharmaceutical Group A as the research object and uses literature research,inductive analysis and case study.First of all,based on the financial situation of Pharmaceutical Group A,it analyzes the financial environment of Pharmaceutical Group A through PEST analysis and SWOT analysis.Second,the financial risk of Pharmaceutical Group A is found through the questionnaire survey.After the descriptive analysis is made for the results of the questionnaire survey,it is found that the financial risk points of Pharmaceutical Group A are mainly reflected in five aspects.First,the strategic problem of financial risk is neglected.Second,the financial business process cannot meet the changes of the group and its subsidiaries in a timely manner.Third,the organizational structure has been readjusted and the responsibilities of various functional departments have been allocated inappropriately.Fourth,the business posts have not paid enough attention to the concept of financial risk management.Fifth,the financial system is unreasonably designed and the distribution of authority is inappropriate.Finally,through the analytic hierarchy process,it is found that the overall financial risk of Pharmaceutical Group A is in the medium warning state by using the results of the questionnaire survey.Considering the results of financial risk level evaluation of Group A and the related theory of financial risk management,the article proposes the control countermeasures for the financial risk management of Group A.The Control strategy is divided into strategic perspective and execution perspective.From a strategic point of view,Group A should establish the concept of financial risk control for all staff members,because the pharmaceutical manufacturing industry is a well-known high-risk industry.In terms of the inappropriate allocation of responsibilities in the group,it is suggested that the group should introduce banking mechanism and establish internal fund settlement center,so as to improve the efficiency and ability of using group funds in the group at the same time.In terms of the problem that the financial business procedures of Group A cannot meet the changes of the Group and its subsidiaries in time,it is suggested that group sould improve the information management and control and build the Group's information platform.From the perspective of execution,in order to enable the group to understand its real financial situation and operating results and identify the possible financial risks in time,the group should build an effective financial risk index system.Business department is the first defense for risk management and the basis of enterprise risk management.Therefore,the group needs to determine the normal routine financial risk management process and strengthen the cooperation between financial management departments and business departments.