HL Company Financial Risk Control Research

Financial risk refers to the company for financing, investment, fund collectionand income distribution, such as the financial activities, because there are variousfactors that can’t control and predict, cause the company’s actual earnings far from itsearnings forecast plan, may lead to an economic loss, or even bankruptcy. In theeconomic crisis, the world economic recovery is facing great crisis, many companiesin China financial risk management consciousness weak, backward managementtechnology, these companies are facing the survival and development more and morecomplex environment and the financial risk. This shows the company’s financial riskidentification, measurement, prevention and control of the growing importance of.This paper first analyzes the background and significance of financial riskcontrol research at the present stage, and the study of dynamic risk financial controlof the company are summarized. The concept and theoretical basis and provides anoverview of corporate financial risk control, then the financial risk classification andanalysis of the identification method, and the company’s internal control theory andfinancial risk control measures are applied comprehensively combs, laying thetheoretical foundation for the further research. Secondly, the basic situation and theorganizational structure of HL company are analyzed, and the method of thecompany to take qualitative and quantitative analysis on its financial risk, the studyfound HL, there is a certain degree of risk in the financing, investment and capitalrecovery and so on; at the same time, through careful study found that internalcontrol system of the HL company is not perfect is the result of the main reason offinancing, investment and capital recovery risk, HL capital structure is notreasonable, higher financing costs, investment is not reasonable, accounts receivableand inventory liquidation risk big, recovery slow capital leads to the company isfacing greater financial risk.Therefore, this article puts forward measures to guard against financial riskfrom four aspects, choose appropriate financing channels and financing scale, reducefinancing costs in order to improve the financial risk prevention ability and improveand implement appropriate debt plan. Set up a financial risk early warning system toimprove company financial risk identification ability; Strengthen the accountsreceivable and inventory risk control to reduce the risk of capital recovery; Toimprove the company’s financial risk consciousness and improve the system of internal control; This not only on the HL company and its important significance andis very important for the steel industry.