Shaogang Financial Risk Analysis And Control

Financial risk analysis and control has long been a focus in the field of financial risk management, and corporate executives must attach importance to the link. In the world because of financial risk and closure and bankruptcy of the company is not in minority, with this kind of lesson we should fully understand the financial risk analysis and control. Based on the theory of MM theory and extension from the perspective of financial management, analyze the financial risk of the application status. First of all to its funding risk, investment risk, management risk, profit distribution risk the risk of the four is used to identify the longitudinal and transverse recognition, then the efficacy coefficient method is adopted to steel correct evaluation on the financial risk, finally proposed optimized financing platform and channel, reduce financial cost, at the same time, strengthen the application of financial risk management, security, and total control scheme of the healthy development of the steel.For an enterprise, financial risk throughout the production and operation of each process, this article through to the steel case analysis to explore China’s iron and steel enterprise financial risk condition. Based on application of financial risk identification were used to identify the longitudinal and transverse recognition: longitudinal recognition is based on the application itself four years from 2011 to 2014 financial situation analysis; Identification is through the steel and iron and steel industry average transverse contrast analysis. Calculated the steel main financial problems, that is, single financing way, tension, sheet is not reasonable, money demand imbalance in the structure of capital, debt paying ability weak, investment on deviation, profit ability insufficiency, the enterprise development strategy problem such as no staying power. Efficacy coefficient method is approved by the state-owned assets supervision and administration in our country one of the methods of evaluation of enterprise financial risk, through the efficacy coefficient method to quantify the steel financial risk analysis and evaluation to the correct conclusion. Finally, in order to effectively control risk in the future business activities, minimize negative impact, this paper gives the control proposal, namely by optimizing the financing platform and channel, reduce financial cost, at the same time, strengthen the application of financial risk management, etc., to guarantee the healthy development of steel.This article is for the steel industry leading companies, namely the application of financial risk analysis, the results of the analysis can also be for steel shareholders, creditors, suppliers and other stakeholders in the decision-making to provide some reference; In this paper, the analysis of the process for iron and steel industry also has important reference, for the healthy and orderly development of iron and steel industry to improve management level has important significance.