Construction And Application Of Agricultural Enterprise Financial Risk Management System Based On New ERM Framework

In recent years,the agricultural enterprises of our country take the market demand as the guidance,take the realization profit maximization as the goal,improve continuously,the production mode changes gradually to the commercial market type.However,due to the late start of agricultural enterprises,the lack of scientific management,the lack of risk management,financial risk awareness and other issues become increasingly prominent.At the same time,the financial crisis caused by the contradiction of high financing cost,difficult to benefit from investment,low level of operation,makes many agricultural enterprises’ profit space continue to narrow and development limited.Therefore,a good financial risk management system is the basic premise and necessary guarantee to realize the sustainable operation and great progress of the enterprise,which needs enough attention.This paper will take ZF seed company as the research object,with the purpose of improving the financial risk management level of agricultural enterprises,enhancing their profitability and sustainable development ability,based on the ERM Framework Theory newly issued in 2017,combined with the analytic hierarchy process and efficiency coefficient method,to identify,analyze and evaluate the financial risk of ZF company,and draw the conclusion that the comprehensive financial risk level of the company is in the"Medium Risk" state on the other hand,it points out that there are some problems such as insufficient risk governance and cultural construction,disconnection between financial risk management and strategic goal setting,failure to establish a risk portfolio view,poor information exchange and lack of external coordination and supervision.It suggests that ZF company should focus on the improvement of operation and development ability.After analyzing the necessity of establishing financial risk management system,this paper constructs the financial risk management system based on the current financial risk management status of the company.Combined with the five elements and 23 principles of ERM risk management system,it designs the basic organization system of financial risk management,the execution system of financial risk management procedure,and the supervision and coordination system of financial risk management and integrate,and apply this management system to ZF company’s actual work,test its actual effect,and put forward the improvement direction and improvement strategy of ZF Company in financial risk management to promote the healthy development of the enterprise.