SGBC Steel Company Financial Risk Evaluation And Control Research

In recent years,enterprises are getting increasingly competitive with the rapid development of domestic economy.Due to this phenomenon,numerous enterprises are prone to financial crisis under fierce competition.In the daily operation and management,the financial risk should be regarded as one of the key management targets in order to find the financial risk in time.While the relevant control measures should be put forward by a certain means to prevent the burst of the financial crises.Because capital is the foundation for the normal operation of enterprises,the operation of capital directly affects the degree of financial risk of enterprises.The iron and steel industry is a typical capital intensive industry,and the demand for funds is larger.At the same time,as the pillar industry of China's national economy,the iron and steel industry has a great impact on the economic level of our country.Therefore,we should pay attention to and strengthen financial risk assessment and control for iron and steel enterprises.In this paper,SGBC Steel Corp is used as the research object to identify,evaluate and control financial risks.First,through the comparison of its own financial indicators and the average level of the industry,we identify and analyze the company's financial risk and its risk sources.Secondly,on the analysis of its financial risk status,fully combining the characteristics of the iron and steel industry and the characteristics of SGBC Steel Corp,the comprehensive evaluation system of financial risk is constructed from two aspects of financial and non-financial aspects,in order to make a comprehensive evaluation of the financial risk of the SGBC Steel Corp.In the construction of a comprehensive financial risk assessment system,the analytic hierarchy process(AHP)is used to determine the weights of all levels and indexes,and then the improved efficiency coefficient method is used to determine the risk evaluation criteria for financial indicators,and then the evaluation criteria of non-financial indicators are determined by the expert scoring method.Finally,according to the comprehensive evaluation system,it is concluded that SGBC Steel Corp's financial risk score is in a moderate state.The main reason for the financial risk of SGBC Steel Corp is that the company's lack of financing capacity can hardly bring power to the enterprises.At the same time,SGBC Steel Corp can't adapt to market demand.Growth of it is poor,causing in low profits,resulting in inefficient operation of enterprise funds.In addition,a large amount of debt receivable is also one of the important reasons for financial risk.Finally,based on the financial risks identified by SGBC Steel Corp before,the specific measures for SGBC Steel Corp's financial risk control are put forward from different aspects.Through this study,we hope to provide some reference for the financial risk control of the SGBC Steel Corp.