Research Of Financial Risk Control For Cosco

Benefited from the rapid development of the world economy and the rapid development of China's economy,China COSCO has become a leading enterprises with profit over billions.However,the shipping business is derived from the economic development of all countries,providing international trade services;that is,the industry is vulnerable to the world's macroeconomic environment and the international financial crisis and is facing a huge cyclical systemic risk during the process of development.Since the financial crisis in 2008,the global shipping business has entered the era of the Great Depression,as shipping leading enterprises in China COSCO undergone consecutive years of losses since the beginning of 2011,people put a label on the COSCO as *ST ocean.Although the annual report in 2013 showed the profitability of 2.35 Billion,the serious financial risk has not been resolved.Faced with this situation,we have to think about how to resolve the financial risk in relation to cyclical characteristics of the shipping business;what strategy should be come up with corresponding to cyclical risk;and what are the shortcomings of the enterprise itself?Combined with the above thinking,this paper intended to use China COSCO as the object of study,by means of financial risk analysis,financial risk control and other theories,and to conduct the financial statements of China's offshore financial risk analysis.With the characteristics of the shipping business,we found that the causes of its financial risk are adverse economic environment,political environment,shipping market environment,the lack of flexibility in their own business,the lack of scientific decision-making competence,competitiveness and so on.Finally,this paper make some suggestions on how to improve the risk control,to reduce the financing risk and investment risk,to standardize the decision-making process,to improve the scientific decision-making,to enhance the business flexibility to deal with the cyclical market risk,and to seize the opportunity to improve their own competitiveness.This paper also provide the reflection to other shipping companies in China as reference,in order to assist them prepared to financial risks;Therefore,they can go further in the future.