Research On Financial Risk Of W Foreign Trade Company

Along with the continuous development of the global economic,the business situation of foreign trade enterprises has become more direct and fierce due to the influence of the international economic environment.It’s been more than ten years since the world financial crisis that took place in 2008,the overall economic situation in the world has not recovered,the economic situation is relatively low,and the volume of orders in most industries has dropped sharply.In particular,the foreign trade industry,with exports as the main mode of trade,has suffered greatly.Faced with increasingly fierce market competition,and with the continuous appreciation of the RMB,companies are facing more and more challenges.Large foreign trade enterprises have gradually shifted from single exports to exports and imports,but small and medium-sized foreign trade enterprises may not be successful in transition,and even some of them are bankrupt.Although China’s development in foreign trade has been growing at a high rate in recent years,the impact of the financial crisis has also affected the development of foreign trade enterprises to some extent,the fierce competition in the industry and the increasing complexity of the market environment have led more companies to think about how to properly cope with opportunities and challenges so that enterprises can survive in a more intense environment.Most domestic small and medium-sized foreign trade enterprises have weak awareness of risk prevention.On financial risks,they mainly rely on business experience to reduce risks.There are very few professional internal financial risk managers.However,the financial risk status of the enterprise can directly affect the operation and development of the enterprise.If the financial risk is too high,it will lead to a situation of poor management or even bankruptcy.Therefore,the research on the financial risk status of enterprises has become an important research topic.In the face of the increasingly complex world economic environment,the financial risk status of enterprises is affected by both internal and external environments,such as foreign exchange changes,credit risks,and national policies.For enterprises,reducing financial risks can stabilize the business situation and enable the company to continue to grow and develop.Therefore,we need to analyze and evaluate the financial risk status of the company,so as to find ways to reduce financial risks and promote the healthy and stable development of the company.The main research of this paper is to adapt to the current severe environment,how small and medium-sized foreign trade enterprises should identify and respond to their own financial risks,and build a risk management system to prevent financial risks.This paper adopts a small and medium-sized foreign trade enterprise to conduct research and analysis on its development history,organizational structure and industry status.According to the company’s financial data from 2015 to 2017,select representative financial indicators for processing and analysis.Then use the Z-score model and the F-score model to conduct a risk assessment analysis of the company’s financial status,reflecting the financial status of the company.From the analysis of qualitative and quantitative aspects,we can find out the potential risks of W foreign trade companies and propose corresponding solutions.The main measures and recommendations have the following five aspects: improving the internal control system,improving the level of fund management,rational use of financial derivatives,raising the awareness of foreign exchange risk management,and adjusting the structure of import and export.In order to improve the understanding of the company’s financial risk status,timely identify potential financial crises,use reasonable ways to avoid financial risks,and promote the development of enterprises in a good situation.