Risk Control And Management On Cash Flow Of Petrolchemical Enterprise

Recently, the domestic oil price is increasing persistently caused by the international oil price, and it fluctuate greatly, which brings much difficulty directly in the field of cash flow management for the petrolchemical enterprise dependent on crude oil. To control the risk level of crude oil price has much relationship directly with the survival and development of enterprises. Financial risk caused by the fluctuation of cash flow is the crucial problem to be solved for the Chinese petrol chemical enterprise. It is significant to study the cash flow control and management caused by the fluctuation of oil price for the Chinese petrolchemical enterprise.Firstly, the paper analyses the internal relationship between cash flow and financial risk management, and the impact cash flow has on the financial risk. Then the paper illustrates the risk caused by the purchase cost, which means the bad changes of the cost price and product sale price. Based on the theory, the paper makes a deep research on the potential cash flow risk of the Chinese petrolchemical enterprise. Crystal wizard is used here to analyze the cash flow risk, to simulate the trend and direction of cash flow fluctuation, and to analyze the VaR value. The analysis above will provide the reference for the cash flow planning and management. Jinzhou Petrochemical will be taken as an example to stimulate VaR. Empirical study is about the relationship between the cash flow risk and finance condition. Finally, the paper discusses how to use oil futures to avoid risk of crude oil, and makes suggestions to the Chinese petrolchemical enterprise.