Research On Financial Risk Control Of B Steel Company

In 2017,the domestic steel industry increased the structural reform of the supply side.With the active cooperation of the steel companies,the company has achieved remarkable results in terms of capacity and environmental protection supervision.However,the steel industry still faces many challenges.For example,the demand declines,the production capacity is still excessive,the environmental protection costs increase,the raw material prices fluctuate greatly,and the international trade protectionism leads to an increase in steel export resistance;Most steel companies have an imbalance in the proportion of asset structure,shortage of funds,imperfect financing system,etc.External risk factors and internal risk factors have triggered financial risks in the steel industry,which has seriously affected the development of steel companies.Therefore,through systematic analysis of the financial risks of steel companies and finding effective measures for financial risk control,it is the guarantee for the long-term development of steel companys.This paper takes B steel company as the research object.First of all,this paper introduces the background and research significance of steel companies,as well as the research status and related theories of financial risks at home and abroad.Combined with the development of B steel company,the financial risks and causes of B steel company are analyzed from four aspects: financing,investment,operation and cash flow risk.Secondly,the financial indicators of B steel company from 2008 to 2017 were selected,and the factor analysis method was used to comprehensively evaluate the financial risks.The results showed that the B-steel company had too many financing channels,weak solvency,unscientific investment strategies,and too much credit policy.Demanding,tight internal cash flow and other issues.Finally,based on the comprehensive results of financial risk analysis and evaluation of B steel company,combined with the actual situation of B steel company,the paper proposes to broaden the financing channel and change the financing mode,reduce the investment scale and choose the investment project carefully,reduce the credit threshold,establish cash flow risk early warning mechanism and other financial risk control measures.It is hoped that the research results of this paper will enable B steel company to effectively control financial risks and improve the current situation of losses in the fierce market competition to achieve profitability.