Research On Financial Risk Management Of S Retail Company

With the rapid development of the Internet economy since 2013,the original market share of traditional retail enterprises has been threatened and impacted by e-commerce platforms.In order to cope with the changes in the competitive environment,they have continuously increased the investment and transformation of the construction of online marketing platforms,but they are also suffering from the dual pressure of competition between traditional retail industries and retail industries and e-commerce platforms.In 2017,S Retail company once again transformed to the smart retail model.With the help of the Internet,the Internet of Things,big data and other technologies,it takes the offline consumer experience as the center.In order to achieve the goal of "offline experience + online order",online and offline markets should be organically integrated,so as to provide consumers with accurate and personalized marketing more efficiently.However,the dual-channel operation mode of "offline experience+ online order",due to repeated price wars,has not improved enterprise performance,but the expansion of scale,resulting in the extremely tight capital chain,continuous debt,facing unprecedented financial pressure,to a certain extent,increasing the difficulty of financial risk management of enterprises.Therefore,it is necessary to reevaluate the existing and potential financial risks of the existing business model of S retail enterprise,and propose corresponding financial risk control schemes and measures through the financial risk evaluation results.This paper takes S retail company,which is transforming to smart retail mode,as the research object.Based on the relevant theories of financial risk management at home and abroad,it finds that S Retail company has obvious or potential risks in the aspects of operation,investment,financing and financing based on the identification of financial risks from the four aspects of operating risk,investment risk,financing risk and other risks according to the company’s operating characteristics.Based on the identification results of financial risks,12 financial risk evaluation indicators are selected,and the entropy method combined with the efficiency coefficient method is used to comprehensively evaluate the financial risks from2017 to 2021.The results show that the financial risks of S Retail Company in five years have changed from medium risk to large risk and significant risk.Based on the results of financial risk evaluation,this paper analyzes the causes of financial risk from the aspects of internal environmental factors and external environmental factors.Combined with the specific operating conditions of S retail company,targeted financial risk control measures are proposed from four aspects of operation,investment,financing and other financial risks,which is conducive to improving the financial risk management level of S Retail company and reducing the possibility of financial crisis.At the same time,it can also provide some reference for the financial risk management of retail enterprises in the transition period of smart retail.