Research Of Financial Risk Control With Diversified Management Of HR Group

Diversification is one of the most important developing strategies. The main goal for companies implementing it is to gain a satisfying trade-off between performance and risk. Therefore, that studying the relationships between diversification, performance and risk means a great deal to companies. Meanwhile, it is always a popular topic in the academic field. So far, no consistent results have been reached. In the context, this paper will analyze the diversification and risk of HR Group and list some measures under hope to offer valuable reference for the diversification development of HR Group.This paper primarily includes the following content. Firstly, the paper introduces the studying backgrounds abroad and home as well as main content of the paper. Secondly, the paper gives a full-scale of related theory of strategies of diversification, including definition of diversification, classification and measurement of diversification, the causes that companies implement diversification, the motivations and modes of the diversification as well as financial risk that caused by diversification. Thirdly, in terms of the specific process of diversification of HR Group, the paper finds some existed problem of the performance of diversification in HR Group :Marketing risk, financial risk and financial management risk which generated by diversification are increasing. Fourthly, the paper puts forward some useful measures to control the risk in the process of diversification of HR Group. HR Group should establish finance early-warning system and finance information management system and apply"Core Competence"strategy as well as valuable invest and financing strategy to control the risk related to the diversification. Based on the reality of HR Group, the paper has realistic guide sense to the long-term diversified development strategies.