Research On Financial Risk Evaluation Of Hainan Mining Based On AHP

Nowadays,with the rapid development of China’s economy,the financial risks faced by operators are becoming more and more complicated.Therefore,it is even more important to study the financial risks of the company and minimize the financial risks faced by the company.However,due to the increasing steel production in China’s steel industry,the overcapacity of steel production,but the quality of products is extremely lacking,and the development of China’s steel industry is saturated,the state promotes the rectification of the steel industry through mergers,which strengthens the competitiveness of the market.And China’s steel industry was hit by the financial crisis,resulting in a large number of small and medium-sized enterprises bankruptcy restructuring.Under such unfavorable conditions,the evaluation of financial risks has become a top priority.The key point for steel companies to continue to develop is to establish a sound financial risk evaluation system.The financial risk early warning model based on the company’s own characteristics can track and supervise the company’s financial data,accurately predict possible financial risks,timely adjustment to take financial risk control measures,formulate response plans,and improve the company’s risk flexibility.This thesis takes Hainan Mining Co.,Ltd.as the research object.On the basis of relevant theory,through the AHP,the questionnaires are used to confirm the weight of each financial indicator,and the analytic hierarchy process is used to establish the comprehensive financial risk evaluation system of steel industry combined with the power function method to establish the scoring standard,scores the financial risk of Hainan Mining Co.,Ltd.,judges the financial risk level;tries to ensure the stable operation of Hainan Mining,and is the management and the same industry of Hainan Mining.Provide a reference for financial risk evaluation issues.The study found that the financial risk of Hainan Mining has been deteriorating for the past three years.At present,the financial risk evaluation is " Moderate Risk Warning ",which has great risks.The company has good solvency,but its capabilities are lacking in other aspects.Many indicators are abnormal,and sales in growth capacity.The growth rate score is the lowest and there are significant risks.In view of the financial risks faced by Hainan Mining,this paper analyzes the causes of financial risks based on the scores of various indicators in the evaluation results,and proposes improvement through the establishment of financial evaluation system,establishment of budget department,strengthening of enterprise operation management,formulation of financing plan and human resources management.Measures to provide advice on the long-term development of Hainan Mining.