Research On Financial Risk Control Of JCI Company

Recently, due to the common effect of sluggish recovery of the world economy, the weak demand of international market, overcapacity of the commodity etc.,the mining enterprises have generally performed poorly in China, product prices steadily declined and gradually leading to the vicious circle of the cost. The deterioration of business situation has led to the gradual enlargement of some enterprises' financial risk,and the return on capital is decreasing, and the asset liability ratio remains high. The profit margins of enterprises are decreasing year by year. In the current environment, mining enterprises need reasonable control of the financial risk in the process of reform and development. On the basis of identifying the root causes of enterprise risk, analyzing and formulating corresponding control measures can control the financial risks in a reasonable range and realize the successful transformation of the enterprise.This paper takes JCI company as the research object, using the F-measure analysis and financial ratio analysis and other methods to identify the present situation of JCI company's financial risk, then financial risk control is analyzed from the financial risk early warning mechanism,financial risk control mechanism and the establishment of the financial risk system for the three aspects of JCI company. It is found that the following problems in the company's financial risk control: Firstly, the early warning mechanism of financial risk is not perfect, and the existing early warning mechanism is not suitable for enterprise's financial status. Secondly, the financial risk control organization is not strong in executive capability, and the financial risk control decision-making is not scientific. Thirdly, the financial risk system is not perfect, and many systems are lacking in the details of the implementation etc. To solve the above problems, combined with the financial risk situation of JCI company, this paper puts forward the corresponding opinions and suggestions from three aspects, which are the perfecting financial risk early warning mechanism, refining the financial risk control system and improving the enterprise financial risk control mechanism, taking the development of the current economic environment in China and abroad as well as the JCI company,the problems need to be payed attention to the financial risk control system reform process also has carried on the thorough discussion. The enterprise financial risk prevention and control system is of great significance for the long-term development of enterprises. The research results of this paper can provide valuable references for other companies to reform their financial risk control system.