Research On Financial Risk Under The Background Of Financial Sharing For Midea Group

In the context of economic globalization,in order to stand out in the fierce market competition,enterprises choose to continuously expand their scale,mainly by establishing branches and subsidiaries,etc.In these process,the financial risks faced by enterprises are also increasing because the amount of funds required for business expansion is huge.The pheonmenon of business failure because of radical expansion is not difficult to be found in reality.After the implementation of the mode of financial sharing,financial shared service center will be responsible for the accounting work of the entire group so that more powerful information can be provided in controlling of financial risks by minimizing repetitive work in financial accounting between branches and the group headquarter,and improving the efficiency of financial management greatly.Midea Group is a typical example.In recent years,the scale of Midea Group has expanded rapidly accompanied by the increasing of financial cost and operating cost.In addition,after the expansion,the process of information transmission and feedback within the enterprise will be longer accordingly.If corporate executives are not aware of market changes when formulating the company strategy,mistakes are easy to be made in decision-making.In face of major changes in operating environment and various problems,based on the support of internet technology,the speed of information transmission has increased greatly so that just-in-time financial position monitoring can be realized and decision-making process is evidence-based.Midea Group is taken as a research object in the thesis.The background of the construction of financial shared service center and overview of the reform will be introduced briefly.Then positive impact of the mode on financial risk management will be analyzed in detail.Next,the potential financial risks,including risks caused by data security,financial staff resisting to reform,difficulty in integration of industry and finance,low efficiency of grassroots tax management and the compliance of accounting file management,that have emerged after the practice of the mode of financial sharing and some optimization suggestions about how to deal with potential financial risks will be introduced respectively.