The Research On Financial Risk Management Of Company A Under The Financial Sharing Model

With the development of modern economy,under the increasingly fierce market environment,if an enterprise wants to develop rapidly,increase profits and expand its business,it needs to set up branches or subsidiaries around the world.In this case,there may be management problems.problems,rising costs,etc.This creates more financial risk for the business.Excessive financial risk will lead to the break of the capital chain of the enterprise,which will lead to serious consequences such as bankruptcy and fraud of the company.The management of financial risk is very important to the production management of the enterprise.The introduction of financial sharing in my country is relatively short,but after more than 20 years of development,domestic companies have gradually begun to set up financial sharing service centers due to their own advantages.In this context,it is particularly important to conduct in-depth research on enterprise financial risk management.Company A is a leading company in my country’s household electrical appliance industry,taking the lead in implementing the financial sharing model to control costs,reduce financial risks,and realize the transformation of financial accounting information into strategic financial support.Therefore,this paper uses the case study method and takes Company A as an example to discuss the financial risk management of Company A under the financial sharing model.First,the background and significance of this study,the research content and the research method are expounded.Secondly,it discusses the relevant theories of financial sharing and financial risk management.Thirdly,in the case study,it analyzes the background of company A’s establishment of financial sharing,the necessity of implementing the financial sharing model,the implementation path of financial sharing and the key points of construction;and business process analysis,to find out the relevant process systems that may cause financial risks;then,using the risk model to comprehensively measure the financial risks of company A from 2005 to 2020,and focus on discussing and analyzing the company’s entire financial activities.The main financial risks,and the corresponding countermeasures and suggestions are given.On this basis,some experiences of Company A in financial risk management are summarized,and some practices worthy of sharing with other enterprises are proposed.This paper conducts a case study on Company A,and the results show that: First,Company A implemented the financial sharing service model,which promoted the reform of the company’s financial management system and accelerated the development of the company’s business-finance integration;second,after the establishment of the financial sharing model,the company has new financial risks in terms of capital security,inventory circulation efficiency,tax market fluctuations,project investment and financing efficiency,and human resource management.Third,in the future business development process,Company A must continuously improve the company’s financial sharing platform and establish a sound financial risk management system,so as to promote the company’s better development.