Research On Financial Risk Management Of Hunan Tianyan Machinery Company

With the continuous deepening reform of the market system,China is at a special moment of industrial upgrading and economic internationalization.The importance and urgency of industrial upgrading has been raised to unprecedented heights.As one of the significant industries of the national economy,Chinese auto parts manufacturing industry is also facing huge challenges now.However,at this particular stage,the entire auto parts manufacturing industry in China is in a rare period of recession.Some companies have experienced negative phenomena such as sharp declines in performance and insufficient profitability,and some companies were even in a state of severe losses and facing bankruptcy.Therefore,the ensuing financial crisis requires us to deal with the financial risks faced by auto parts manufacturing enterprises as soon as possible,which has practical significance for the continuous and stable operation of auto parts manufacturing companies.Based on the theory of financial risk,this article uses case analysis to study Hunan Tianyan Machinery Company.First,by combining the financial reports of the past five years,the financial risks currently facing the company are calculated and analyzed.From a financial perspective,itcan be identified that the company has financing risks,investment risks,operating risks,growth risks,and cash flow risks;from a non-financial perspective,it can be identified that the company has policy risks,technology research and development risks,and human resources risks.Then,a library of financial risk evaluation indicators was formed through the identification of financial risks,and the scientific indicators were further selected by means of expert questionnaires to establish a financial risk evaluation system applicable to the firm.Finally,the analytic hierarchy process is used to give weight to each indicator,and the specific size of financial risk is calculated by the power factor method.The results show that the financial risk status of it has changed from "general risk" to "significant risk" in the past five years.Based on the results,it finally proposed corresponding control measures to the firm,including broadening financing channels,changing the direction of investment,strengthening receivable funds management,and improving industry competitiveness.I hope this research will have certain applicability to the financial risk assessment and control of auto parts manufacturing companies,or improve their anti-risk capabilities,and provide a reference for other peer companies at the same time.