Case Study Of C Group Financial Risk Management Under The Background Of Supply Side Reform

The steel industry is the basic industry for the country's economic development.Its development not only promotes economic growth,but also plays an indirect role in promoting the development of upstream and downstream industries.For the steel industry in 2019,it has entered a new phase of supply-side structural reform.However,the steel industry still faces many challenges.Most steel companies still have unbalanced asset structures.The financial risks caused by problems such as excessive debt scale and imperfect risk management system have seriously affected the normal development of enterprises.Therefore,through the identification and analysis of the financial risks of steel companies,the effective control measures are not only for the long-term development of steel enterprises,but also better respond to the requirements of the national supply-side structural reform.This paper takes C Group as the specific research object.Firstly,it gives a brief introduction to the supply-side structural reform overview,the C Group overview and the C Group's financial risk management overview.Then,using the financial statement method,the C Group's financial performance for 2014-2018 is used.The data is analyzed,and the financial risks of C Group are accurately identified from four aspects: financing risk,investment risk,business risk and market risk.Then,using the qualitative and quantitative comprehensive analysis method,the financial risk of C Group is analyzed and found.C Group has problems such as low level of fundraising management,local protectionism,management decision-making mistakes,unreasonable inventory management,lag in product technology update,severe international market situation and rising transportation costs,which will trigger the financial risks of Group C.Finally,this article improves the level of financing management,does not rely too much on local protection,scientific decision-making,optimizes investment scale,strengthens inventory management,strengthens product development and speeds up technological innovation,accelerates capacity structure adjustment,optimizes supply and demand structure,and expands domestic and foreign markets.The aspects propose control measures for financing risk,investment risk,business risk and market risk,and integrate the financial risks of Group C according to the COSO risk management framework(2017 version),and use the framework to propose control measures to help C Group form a risk-based Oriented management philosophy and framework.It is hoped that the research results of this paper will enable C Group to effectively reduce financial risks and change risks into opportunities in the fierce market competition,so that the Group will take a longer-term and stable approach and provide reference for other enterprises.