Financial Risk Assessment And Prevention Of Baota Petrochemical Group Co.,Ltd

With the increasingly complex competition environment of global energy market,it is very important for petrochemical enterprises to control and prevent financial risks.In recent years,with the deepening of supply side structural reform,private enterprises in petrochemical industry are facing great challenges.In the process of industrial transformation and upgrading of petrochemical enterprises,the financial risk of enterprises has become one of the main risks faced by petrochemical enterprises,which poses a major threat to the sustainable and healthy development of enterprises.Because the market share is mostly monopolized by state-owned enterprises such as PetroChina,Sinopec and CNOOC,the living space of private petrochemical enterprise Baota Petrochemical Group Co.,Ltd.(hereinafter referred to as Baota petrochemical)is becoming increasingly narrow.First of all,this thesis reviews the research results of domestic and foreign scholars on the impact of financial risks and financial risks of petrochemical industry on debt default,and selects Baota petrochemical,a private petrochemical enterprise,which relies on the issuance of huge corporate bonds for financing,leading to the outbreak of debt default event in November 2018,as the case study object.Combined with the characteristics of Baota Petrochemical's own development,the investment risk,financing risk,operation risk and cash flow risk brought by debt financing to Baota Petrochemical are preliminarily identified,and these risks are detailed.Secondly,according to the literature and expert opinions,combined with the five principles of comprehensiveness,sensitivity,availability,operability and mutual exclusion,11 indexes are selected to build the financial risk evaluation index system of Baota petrochemical.Using the analytic hierarchy process and efficiency coefficient method to score and rate the financial risk levels of Baota Petrochemical from2014 to 2017 respectively,the conclusion is that the overall financial risk level of Baota Petrochemical is high.Among them,the investment risk,financing risk and cash flow risk are at a high level,while the operational risk level is general.Moreover,according to the results of risk assessment,combined with the development characteristics of Baota petrochemical,the internal and external causes of financial risk of Baota Petrochemical are analyzed,and the important bottleneck restricting the sustainable development of Baota Petrochemical is found.Finally,according to the cause of financial risk of pagoda,seven risk prevention suggestions are put forward.It is hoped that these suggestions can help Baota Petrochemical to further improve the level of financial risk management and avoid the embarrassing situation of severe financial fluctuation again.At the same time,it provides some reference value for other private enterprises in petrochemical industry to prevent financial risks.The contribution of this thesis is as follows: first of all,this thesis fills in the blank of financial risk case study of large-scale private petrochemical enterprises,and provides reference value for the later study of other large-scale private enterprises with high debtoperation.Secondly,through the study of financial risk of Baota petrochemical,combined with the frequent occurrence of corporate bond default events since 2018,it is found that after the establishment of the public offering system in the bond market,the issuer and the holder have misunderstood the electronic bank acceptance bill.In the end,combined with the problems found at present,this thesis puts forward some suggestions on the optimization of corporate debt financing system and debt financing terms.