Research On Enterprise Financial Strategy Under The Background Of COVID-19 Epidemic

Natural disasters and accidents exist objectively in the real world,but when and where they occur,who they harm and what degree of losses they cause are unpredictable,so they are in an uncertain state.In the era of VUCA,the uncertainty of enterprise’s business environment has intensified unprecedentedly,and the risks such as destructive innovation,consumer preference deviation,global pandemic,network security and climate change are unheard of.Emerging risks are unpredictable and unmeasurable,which are different from traditional risks and beyond the scope of human cognition.While challenging the existing risk management theory,they also bring great uncertainty to enterprise management.Specifically: what kind of risk management theory should enterprises practice under? According to the logic of strategic response to uncertainty,what kind of financial strategy should enterprises adopt to deal with unpredictable risks?Based on the theory of elastic risk management and enterprise capability,this paper selects Group A,which is located in the civil aviation field,to reproduce the impact of the epidemic on Group A,the process of risk management and the process of improving enterprise capability through financial strategy,and to explore the financial strategy choice of Group A under the background of the epidemic.According to the logic of "asking questions-analyzing problems-solving problems-conclusions and enlightenment",the research content of this paper mainly includes four parts: first,in the face of the uncertainty brought by the epidemic situation to the business environment of enterprises,this risk is first defined as "sudden system risk",and how to deal with sudden system risk through financial strategy is put forward;Secondly,analyze the risk transmission mechanism from operation-finance-operation,and analyze the risk management measures adopted by Group A;Thirdly,through the risk management measures taken by Group A,the selection process of its financial strategy is explored,and the financial strategy based on elastic risk management is adopted for risk management;Fourthly,the ability type of improving financial strategy is condensed,and Group A improves its cash flow management ability(stability ability)through steady fund-raising strategy and shrinking investment strategy;Improve profitability(resilience)through expanded financing strategy and expanded investment strategy.The research finds that: firstly,financial strategy is an effective means to resolve strategic risks.In an uncertain environment,the transmission mechanism of risk is operation-finance-operation.Through financial strategy,the transmission process of risk between finance and operation can be cut off internally,and the goal of risk control can be achieved.Second,the ability to improve through financial strategy has stability and adaptability.Stability mainly refers to the ability of cash flow management.In the initial stage of risk,the difficulty of financing restricts the investment strategy,and the ability of cash flow management can be improved in the short term through a steady financing strategy and a shrinking investment strategy.Resilience refers to profitability.With the gradual understanding of risks,enterprises are required to turn crises into opportunities and achieve growth.At this stage,investment demand drives financing strategies,and profitability is improved through expanded investment strategies and expanded financing strategies.Third,the financial strategy can not only improve the stability but also improve the resilience.Stability is achieved through efficient management activities,and improvement of contingency ability is achieved through innovative management activities.Financial strategy belongs to efficient management activities and does not directly promote innovative management activities,but innovative management activities need the support of financial strategies and promote innovative management activities through investment strategies.This paper is an applied innovation of elastic risk management,which applies the theory of elastic risk management to the financial field and takes financial strategy as a means to manage risks and improve capabilities,and establishes a new relationship between risk management and financial strategy.At the practical level,we make precise policies in four aspects: capacity building,investment strategy,source of funds and efficiency drive.