Research On Financial Risk Management Of C Motor Co.,Ltd. In The Era Of Epidemic

At the beginning of 2020,the COVID-19 broke out and quickly spread to many countries in the world,causing a greater negative impact on the world economy,amplifying the original weak and imperfect financial risk management system of enterprises,and bringing new risks to the financial management of enterprises in many industries,including automobile enterprises.Under such a background,whether an enterprise can find effective financial risk response ideas and methods is crucial to its own survival and development.At the same time,with the rapid development of the automobile industry,the occurrence of public health events such as the COVID-19 has led to more and more uncertain factors in the production and operation process.These external factors have increased the possibility of financial risks.Therefore,financial risk management is particularly important for enterprises,especially the automobile industry with rapid development and huge potential.Based on the above background,this paper chooses C Automobile Co.,Ltd.as the research object,and adopts the qualitative and quantitative methods such as literature research,case analysis,factor analysis,and four stage symptom analysis.The research content of this paper mainly takes C Automobile Company as an example to identify its financial risk under the epidemic situation,establish the financial risk evaluation model of the same industry,evaluate the financial risk under the epidemic situation of C Automobile Company,analyze the causes,and finally propose countermeasures to deal with the financial risk under the epidemic situation.The research results show that there are some problems in C Company,such as unreasonable capital structure,unreasonable investment direction,weak profitability,insufficient solvency,and defects in inventory management and accounts receivable management.After analyzing the reasons for the risks of C Automobile Company,it is believed that the external reasons are mainly affected by the COVID-19 and industrial competitive pressure.Its internal reasons involve many aspects,including too large debt scale,single financing channel,too little R&D investment,lack of investment feasibility analysis,etc.Therefore,the optimization strategy of risk management is proposed,hoping to provide useful reference for relevant managers.As a national strategic industry,the automobile industry is one of the fastest growing industries in the past few years and an important part of Made in China 2025.Compared with the existing literature,the innovation of this paper is reflected in the innovation of the financial risk assessment and response research perspective of the automotive industry from the perspective of the COVID-19.