Study On Financial Risk Analysis And Control Of HC Chemical Company

With the further development of market economy,enterprises in China will facemore and more complex financial risks. Because the objective existence and damage ofthese financial risks may lead to financial crisis, so enterprises should identificate thefactors which may affect these financial risks and set measures to evaluate the risks,then taking measures to avoid and defuse them.Therefore it proves that analysis andcontrol of the financial risks of HC chemical company has great practical significancein fighting against financial crisis.Based on the theories of financial risk management, this thesis combs theanalytical and controlling methods of corporate financial risks and forms the generalrecognition of enterprise financial risks. Based on the theory above, this thesis regardsHC chemical company as the research example, firstly, introduces the company’sgeneral financial condition, then makes a deep analysis of all risk factors from theperspects of external risk and internal risk factors of HC chemical company. Theexternal risk factors include economic environment, policy environment, industrialenvironment, resources environment. Simultaneously the internal risk factors includefinancing risk, investment risk, business risk, inventory management risk and liquidityrisk. And then the AHP and functionality-coefficient method are utilized to constructthe financial risk evaluation system from four aspects of profit-making ability, growthability, debt paying ability and working ability. Through the risk evaluation of HCchemical company, a serious financial risk is found. Finally, the correspondingcontrolling measures are proposed to control these risks.The financial risk evaluation system and risk-control measures proposed in thisthesis have certain universality for the nitrogen fertilizer industry, and they can helpenterprises to improve their ability and level to resist financial risks.