Research On Financial Risk Evaluation And Response Strategies Of Q Insurance Companies

Due to the late start and weak foundation of China’s insurance industry,with the continuous opening of China’s market,foreign insurance companies are constantly impacting China’s insurance market,which makes China’s insurance industry a huge challenge.With the increasingly fierce competition in the international market,China’s insurance industry is experiencing unprecedented survival challenges.With the continuous development and improvement of the market economy,the insurance business has been transformed from the traditional single business model to a comprehensive financial integration business model integrating banking,investment and securities.With the rapid expansion of capital in the insurance industry and the loosening of capital application channels,insurance companies are encountering more and more risks in the process of operation and growth,especially the financial risks are becoming more and more serious.This forces insurance companies to pay more attention to financial risk control,enhance the awareness of various risk defense,improve risk control techniques and establish risk defense system,which is conducive to China’s insurance industry entering a more mature period of modern insurance industry.In such a general environment,Q Insurance Company has actively implemented internal changes to improve its operational efficiency,but the unscientific financial risk management system has made the company’s financial risk problems prominent.In this thesis,Q Insurance Company is the subject of this study,and the company’s corporate financial risks are identified,evaluated,and then based on the evaluation results,the response strategies for financial risks are clearly proposed.It also hopes to provide reference and reference for other insurance companies’ financial risk management.Firstly,the thesis conducts a review of domestic and international literature on financial risk,and summarizes the theories related to financial risk by using the collected literature as the basis of the study.Secondly,the financial risk of Q Insurance Company was identified from four aspects:debt service risk,capital structure risk,operation risk and profitability risk,and on this basis,a financial risk evaluation index system was constructed through questionnaire survey and combined with the relevant regulations in the Financial Enterprise Performance Management Measures.Then,based on the entropy weighting method,we established the weight coefficients for the financial risk evaluation index system of Q Insurance Company,and then applied the efficacy coefficient evaluation method to obtain the value of each financial index and assign the risk level.From the results of the evaluation,it can be seen that Q Insurance Company is in a general financial risk state,and the paper formulates relevant measures applicable to the financial risk control of the enterprise for the identified financial risks of Q Insurance Company.