A Case Study On The Financial Risk Management Of BS Company

Risks make the development prospect of enterprises have greater uncertainty.If the enterprise can not effectively manage and control the risk,then the probability of financial crisis will increase.If an enterprise can find and effectively control risks in time,it can effectively reduce the probability of crisis caused by financial risks.With the rapid development of economy,China’s enterprises are facing more and more shocks.In order to seek more development in the current market competition environment,enterprises must strengthen the management and control of financial risks.In recent years,the concept of green development has become the theme of The Times,while the scarcity of water resources is a serious problem in China.In this context,the sewage treatment and recycling work is particularly important.Sewage treatment industry in our country started late but developed rapidly,but at the same time of rapid development,the industry enterprise is faced with wastewater treatment project of large initial investment,long period after the operation time,the money collecting problem such as slow,lead to the sewage processing enterprises in financing,investment,etc may face a greater risk of financial,so in the changing economic environment,It is particularly important to strengthen the financial risk control ability of sewage treatment enterprises.Based on the relevant concepts and theories of financial risk management,and combined with the financial data of BS Company in recent years,this paper identifies the financial risks existing in the daily production and operation of the company,and finds that the company has a single financing channel and low efficiency of investment management.Accordingly,the company’s financial risk assessment model is established,and the adjusted Z-score model,namely Z3 model,is used to evaluate and classify the company’s financial risks.Finally,according to the results of the financial risk assessment model analysis,the corresponding preventive measures are proposed for the company,such as: PPP project asset securitization,rational planning of investment projects.It is hoped that the study on the financial risk management of BS Company can provide reference for the managers of sewage treatment industry.