LPGK Financial Risk And Control Research

Agriculture is the foundation of the development of national economy; Agricultural enterprises raise the development fund through the capital markets, constantly increasing the investment, therefore, promoting the development of enterprise and the structure of agricultural industrial. However, the survey results show that in recent years, numerous agricultural enterprises arise the phenomenon that A decline in operating performance and operating management level, and a failure in diversification strategy. Investigating the main reasons, most agricultural enterprises have unsubstantial consciousness of financial risk control, and lack of correct understanding of financial risk, no more establishing the matched system between the enterprise productions and financial risk control. Financial risk management is a key link in the process of enterprise risk management, and is a great challenge of the enterprise's sustainable development; hence, a very important content in modern enterprise management is to manage and control possible financial risks in enterprise management reasonably and to coordinate the balance of income and risk loss scientifically.This paper reviews the background and significance of corporate financial risk control, which analyzes the related dynamic analysis of financial risk and control. Followed by an overview of financial risk and financial risk control and related theories, it analyzes the status of the LPGK financial risk control system. Meanwhile it identifies the financial risk control problem of LPGK from financing process, investment process and operational processes and analyzes the reason of the problem, and find out LPGK has improper financing scale, inappropriate capital structure, improper financing arrangement, limited science and Technology Investment Innovation, lack of effective decision-making before project implementation by financial personnel, lack of strict and effective control during the implementation phase, lack of risk assessment and risk prevention mechanism, share of stock is relatively high and over storage, many accounts receivable and other financial risks. Accordingly the following measures are proposed:first, optimize the capital structure to reduce financing risk, establish scientific financing decision-making mechanism and reasonable collocation between short-term liabilities and long-term liabilities; two, strengthen the feasibility analysis of investment projects, strictly monitor the implementation process and the preparation of seed industry disaster relief fund; three, strengthen inventory management control and refinement of accounts receivable risk management. Finally it raises internal/external mechanisms proposed method of LPGK financial risk control systems. Through optimizing the internal control system of LPGK, it smooths the LPGK financial risk control systems by establishing and improving the financial risk early warning systems, which has an important practical significance to increase the economic benefits LPGK, and improve the ability of sustainable development.