A Case Study On Financial Risk Management Of A Company

As the domestic economic is growing more and more slow, the internet industry still keeps growing rapidly. The development of the internet industry promoted the reform of traditional industry. The internet industry and the traditional industry have effects on each other and improve themselves together. Chinese internet industry is developing fast in the world, and both national policy and different investors support the industry.In enterprise management, financial management is an important aspect of the enterprise’s financial activity, which is under the influence of various factors and restriction. The Internet industry, compared to traditional industry, has greater uncertainty. Because most Internet companies are in their infancy, their development is just beginning and they lack experience, their operating results will easily conflict with their financial goals. So their financial risk is relatively higher. For the middle and small-sized internet enterprises, therefore, how to realize the reasonable management, financial soundness, and establish scientific and reasonable financial risk control system, is an important issue worthy of careful study and exploration.The financial risk of companies is closely related to their operation characteristics. Since operation characteristics of internet industry are significantly different from those of traditional industries, internet companies have different financial risks. This paper chose A company as a representative of small and medium internet companies to analysis. According to its operational characteristics, we pointed out its financial risks. Then we introduced its existing management system and analyzed its deficiency. Finally we gave some practical advice to improve the financial risk management system of A company.