Research On Financial Risk Management Of SC Company

On January 21,2019,the provincial and ministerial-level leading cadres adhered to the opening ceremony of the bottom-line thinking to prevent and resolve major risks.Xi Jin ping put forward the principle of “adhering to the bottom line thinking,enhancing the sense of urgency,improving the ability of prevention and control,and focusing on prevention.Resolve major risks and maintain the sustainable and healthy development of the economy and the stability of the overall social situation.Anthony does not forget the danger,saves and does not forget the death,and does not forget the chaos." The more critical the moment is more difficult and inaccessible,the more the risk prevention should be placed in a prominent position,the rule of the party is to govern the country.In this way,the same is true for business management.In the financial management of enterprises,risks and benefits are the eternal topic of continuous operation of enterprises.Revenue is the external manifestation of the rise and fall of enterprises,and the risks are directly related to the survival of enterprises.In the process of development,enterprises will encounter various financial risk problems.If properly handled,enterprises will benefit from this and will continue to prosper.On the contrary,enterprises will face serious financial crisis and even die.Affected by the law of product life cycle,China’s home appliance industry is currently in the process of innovation and transformation.At the same time,due to the macroeconomic downturn and other complex external environment,household electrical appliance enterprises are facing the development process.In the context of increasingly complex financial risks,in the context of this,home appliance companies should take financial risk management as a top priority.Accurately analyze,identify and evaluate the financial risks faced by the company and take appropriate control measures for different types of financial risks.SC Electronic Holding Group Co.,Ltd.(hereinafter referred to as “SC company”)was founded in 1958.It is a comprehensive multinational enterprise group integrating military industry,consumer electronics and core device research and development.In recent years,SC company has been affected by many factors,both internal and external,and its development level has been restricted to a certain extent.The industry influence andcompetitiveness have been weakened,and its financial risks have also increased.SC company has a long way to go to “enhance the status of the industry,ensure the preservation and appreciation of state-owned assets,and strive to return to the forefront of the company’s major industries in 2020”.Based on this background,this paper selects SC company as the research object,and analyzes the risk of financing,investment risk,operational risk and income distribution risk of SC company with the main ideas of risk environment analysis,risk identification,risk assessment and risk response.Compared with the research,it is found that compared with the listed companies in the same industry,SC company faces greater financial risks and the possibility of bankruptcy.Therefore,this paper puts forward relevant feasible suggestions based on the financial risks faced by enterprises.The development of SC company is a microcosm of the development of China’s home appliance industry.Its operating status and development capability represent the development level of the home appliance industry to a certain extent.For a representative enterprise,research on its financial risk management It is particularly important,and there are few researches on the application of financial risk management for home appliance companies or a specific home appliance listed company.This is one of the innovations of this paper.