Research On Financial Risk Assessment And Control Of BYD Group Based On Entropy Weight TOPSIS Method

Since the reform and opening up,China’s economic structure and mode of production have significantly changed.But most of the traditional industries have been in saturated condition.The development of new energy vehicles is not only in line with the environmental protection concept of promoting green development,but also the only way for China to move from an automobile power to an automobile power.As the earliest high-tech enterprise in China to enter the field of new energy vehicles through diversification,BYD Group leads the development of new energy automobile industry with solid technology and quality.However,under the dual influence of government subsidy reduction and chip shortage,BYD Group is faced with a more complex business environment.How to make BYD to adapt to changes in the external environment,improve the ability of financial risk control is an important direction of this study.This paper takes BYD Group as the research object.Firstly introduces the business model and development history of BYD Group.Then according to the idea of traditional financial risk management theory,risk identification is carried out from four aspects of financing,investment,operation and growth.Then the "entropy TOPSIS method" is used for risk evaluation.Finally,specific risk control suggestions are put forward according to the risk evaluation results.According to the analysis,the financial risk level of BYD Group has been greatly improved in the two years of 2020 and 2021,but the group does not occupy a dominant position among enterprises in the same industry.BYD group’s financial risk not only affected by the macroscopic policy and competition in the industry,but also affected by the group’s internal management decisions.According to the results of the vertical assessment of financial risk,BYD faces the highest level of financial risk in financing and growth,followed by investment risk and the lowest level of operational risk.Combined with the causes of financial risk and the results of financial risk evaluation,this paper proposes that BYD Group should pay attention to broaden the financing methods and optimize the financing structure;Control cost and find new profit points;Optimize the industrial chain and attach importance to core business;Tap market potential and increase investment in research and development。It is hoped that by writing this paper,the comprehensive ability of financial risk control of BYD Group can be further enhanced,the possible financial risks can be objectively predicted,the sustainable development of the group can be further promoted,and the investment decisions of investors and creditors can be provided with certain references.