Financial Risk Research And Analysis Of J Group

As the implementation of the Supply-side reform policy,and the increasingly strict of Environmental supervision,many companies in aluminum industry have to face huge business pressure.In this context,J group rapidly expands its business scale to achieve strategic goals and diversified layout,which leads to increased debt,higher costs and a tight budget.The lack of working capital could be adversely affected by the development of J group in future.Therefore,it is important for J group to effectively analyze and evaluate the financial risk,and to take measures to control the growth of risk.According to the domestic and overseas research results,which relevant with financial risk,liquidity management,and investment management,to take J group as object of study,this paper use Analytic Hierarchy Process and Efficacy Coefficient Method to construct a financial risk evaluation system of J group,and put forward risk management suggestions base on risk situation.Firstly,on the basis of the analysis of the internal and external business environment of J group,through the calculation and analysis of its business data in recent years its financial risk status quo is studied from the four dimensions of fund raising risk,investment risk,working capital recycling risk and liquidity risk.Secondly,Using Correlation Analysis and Analytic Hierarchy Process to determine the evaluation index and index weight,then basing on the improved Efficiency Coefficient Method to adjust the index weight.Following,the financial risk evaluation system of J group is constructed by selecting evaluation criteria and delimiting risk levels.Finally,the evaluation system is applied to assess the financial risk of J group,and the validity of the evaluation results is verified.As well as,Suggestions on the management of the risk of J group are put forward topromote its steady and sustainable development,so as to provide references for other enterprises in the same industry.