Research On Financing Risk Management And Control Of Xinyin Technology Company

Since the 14th Five-Year Plan for Promoting the Development of small and medium enterprises(SMEs)jointly promulgated by the Party Central Committee and the nineteenth departments of the State Council,SMEs,regarded as huge strength in national economic and social development,have received increasing attention for their high-quality development.However,the problem of "financing difficulty" has gradually become a constraint when it comes to the high-quality development of SMEs.As the most basic financial activity of an enterprise,financing is also the basis for an enterprise to carry out its business activities.Due to their small scale and high risk,SMEs are struggling in the financing market.How to improve financing ability and financing availability through financing risk management and control,has gradually become a key issue related to the survival and development of SMEs.This paper uses the literature research method and case study method to conduct the research.In this paper,we combine internal control,risk management theory and financing related theories,and take the medium-sized enterprise,Xinyin Technology Limited Company,as the case enterprise to build a research framework for Xinyin Technology financing risk management and control.Firstly,according to the Xinyin’s strategic objectives and the characteristics of financing activities,set the financing objectives.Secondly,using the field investigation method to investigate the financing practice of Xinyin Technology thoroughly,and using the process analysis method to identify financing risks from each stage of the financing process.In the stage of proposal and approval of the financing plan,there are risks of exaggerated financing of R&D projects and the risk of lack of scientific demonstration of the plan;in the stage of preparation and implementation of the financing plan,there are risks in the private equity market,weakening government support and bank lending market;In the supervision and evaluation stage,there are risks of capital supervision floating in the form of risks,performance pressure risks of incidental clauses,and liquidity risks of capital repayment.Then,the risk matrix method is used to evaluate each financing risk,with the levels and measurement dimensions of the probability and the consequence of risk set respectively.Inviting experts to score the probability level and consequence level of each risk,thus a risk heat map is formed.Finally,according to the quadrant distribution map of risk response strategies,combined with the characteristics and levels of each risk,and taking cost-benefit considerations,the countermeasures of risk avoidance,risk reduction,risk sharing and risk acceptance are used for each risk.From the perspective of capital recipients,this paper uses internal control and risk management theories to build an analysis framework for financing risk management and control of SMEs,and explores the realization path for enterprises to improve financing risk management and control.Meanwhile,through the identification,evaluation and response to the financing risks of Xinyin Technology,it will effectively improve the financing capacity of Xinyin Technology,enable the realization of the financing goals of Xinyin Technology,and provide an analytical framework and improving suggestions for other SMEs to improve their financing risk management and control.