Research On The Impact Of Covid-19 On The Financial Risk Of Ruili Renlong

As a sudden public health event,the outbreak of covid-19 has dealt a huge blow to China’s economic development and exerted a great impact on the production and operation of enterprises.Under the influence of the covid-19 pandemic,enterprises are facing problems such as capital flow disruption and debt repayment difficulties,and their financial risks are also rising sharply.With the mitigation of the epidemic,its impact on the financial risk of enterprises is gradually decreasing.As the epidemic continues to evolve,enterprises’ risk management priorities continue to change.It is an urgent task for enterprises to flexibly select appropriate financial risk control measures to effectively control financial risks according to the changes of public emergencies,and try to restore the pre-epidemic status when the epidemic prevention and control has achieved certain results.Border areas continue to suffer from the impact of imported covid-19 and the long-term impact of covid-19,which further increases the financial risk of enterprises located in border areas and makes it more difficult for them to recover after the epidemic is alleviated.In order to actively cope with the unpredictable economic environment,it is of certain practical significance to study the impact of covid-19 on the financial risks of Chinese border enterprises.This paper is based on the analysis and summary of domestic and foreign scholars’ articles on financial risk,as well as articles related to the impact of the outbreak of covid-19 on the financial risk of enterprises,Based on capital structure theory,risk contagion theory and risk management theory,a theoretical framework is constructed to analyze the impact of epidemic on enterprise financial risk.Taking Ruili Renlong Company located in the border as the case study,the literature research method was used to analyze the relevant financial data and information of Ruili Renlong.On the basis of defining the impact of the epidemic on the financial risk of Ruili Renlong,the current situation of its financial risk under the background of the epidemic was analyzed from the aspects of financing risk,investment risk,fund recovery risk and policy risk,to clarify the financial risk control direction of Ruili Renlong under the epidemic.Through the case analysis method,the influence path of the epidemic on Ruili Renlong’s financial risk is analyzed,and it is found that the regional economic downturn caused by the epidemic,the suspension of production,the increase of third-party risks such as customers and guarantors,and the increase of non-business related investment will directly or indirectly bring debt repayment risks,liquidity risks and financing risks to Ruili Renlong,Thus further affecting the financial risk of Ruili Renlong.Finally,after analyzing and summarizing the impact of covid-19 on Ruili Renlong,the corresponding financial risk control strategy is proposed.Ruili Renlong should improve the flexibility of its risk control and adjust its financial risk control strategy flexibly during the severe impact period and the recovery period of the epidemic.Improving the financial risk control ability under the dynamic epidemic situation in Ruili Renlong by improving the financial risk management system under the dynamic epidemic situation,strengthening the control of investment risk and financing risk under the dynamic epidemic situation,improving the utilization efficiency of assets under the dynamic epidemic situation,and further seeking government support under the dynamic epidemic situation management.Help Ruili Renlong to recover to the pre-epidemic state as soon as possible,so that Ruili Renlong can better cope with the impact of different emergencies on its financial risks in the future.By analyzing the financial risk of Ruili Renlong under the dynamic influence of the epidemic,we hope to help Ruili Renlong recover to the pre-epidemic state as soon as possible,and summarize its experience in the face of public emergencies in the future,Meanwhile,we also hope to provide some reference for other border enterprises affected by the epidemic to carry out financial risk control and recovery after the epidemic relief,This paper provides some reference ideas for the sustainable development of other enterprises that may be affected by public emergencies in the future.