Research On Optimization Of Financing Risk Management For Y Group

The outbreak of COVID-19 since 2020 and more frequent occurrences of trade disputes among major countries in the meantime have reshaped the world economy,where its growth has slowed down and the risk of a downturn has been substantially increased.In such situation,many firms are more or less forced to face operational and financial difficulties.The conditions of the financial market have also changed,which gives rise to higher risks when firms are seeking financing.The capability to “generate blood”,i.e.,fundraising,becomes the foundation for firms to survive and grow,among which financing activities play the most important role.Therefore,risk management in financing becomes vital and urgent.In the case of Y group,in recent years it has engaged in infrastructure construction and investment,where its total assets are rapidly growing year by year,and the number of its projects is also increasing significantly,which,has considerably invoked its demand for more financing.Various issues in its previous risk management scheme with single business operation have surfaced,in which case financing risks may occur and thus impact the normal operation if the current scheme is maintained.This paper discusses issues existing in the current financing risk management of Y group,where the analysis is based on employee interview,relevant literature search,site visit,qualitative and quantitative analysis,and its current situation of financing risk management as well.In view of the issues analyzed in this paper,with tools including risk management risk evaluation models and others,the author proposes feasible optimization schemes for Y group’s financing risk management in four aspects including risk identification strategy,optimizing risk evaluation,and monitoring and early warning mechanism,reasonable financing strategic planning,and processes of control and management related to financing risk.Finally,this paper proposes optimization of team structure,development of awareness and skills,and improvement of performance evaluation,so as to ensure the successful implementation of the optimization measures.Since its establishment Y group is engaged in single business operation and therefore lacks sufficient financing risk management,where,with the adoption of the pertinent optimization scheme proposed in this paper as the guidance,it is expected that Y group is able to safeguard its normal operation with diversified business.