Research On Financial Risk Control Of LI NUO Industry And Trade Company

Financial risk is the uncertainty of the company's financial status and the possibility of loss,and is affected by many factors,such as macroeconomic conditions,company organizational structure,risk awareness of financial personnel,etc.,which are common in fund raising,capital utilization,and fund accumulation.In terms of income distribution,if financial risks break out,it may cause serious losses to the company and even lead to bankruptcy liquidation.As a private enterprise with a scale of over 600 million,Shanghai Linuo Industry & Trade Co.,Ltd.needs to build a scientific financial risk management system to timely monitor financial risks and enhance financial risk resistance.In recent years,the state has strengthened control over the real estate industry,while shrinking monetary policy,implementing a deleveraging strategy,and reducing the financing channels of real estate companies.Shanghai Linuo Industry & Trade Co.,Ltd.has undergone business transformation at this time,from the original manufacturing and sales of glass.The transfer of products and solar water heaters to the housing leasing and warehousing business will put the company at greater risk.Through analysis of the company's financial status,it is found that Shanghai Linuo Industry and Trade Co.,Ltd.currently has three main problems: First,the asset profitability is poor,and the company's current large amount of current assets and non-current assets have not been created for the company.The matching revenue has generated a lot of waste of resources.Secondly,the company has entered the housing leasing industry.The industry status is not high and the negotiation ability is poor.In order to expand the business,the proportion of prepayments and receivables increases rapidly.Third,the company is currently externally The amount of the guarantee is high,and once the guarantee object fails to repay the debt on time,the company will be forced to replace the debt and generate huge losses.The main reason for these problems is that Shanghai Linuo Industry & Trade Co.,Ltd.lacks a sound risk management process,and there is no scientific and reasonable internal control system and financial risk early warning mechanism.The financial information management system has not been effectively implemented;it lacks a long-term Planning,only pursuing the current project's profitability,and not adjusting according to the changes in the market situation,affecting the further development of the company;Shanghai Rinuo Industry and Trade Co.,Ltd.did not have a deep understanding of financial risks,the relevant responsible person risk awareness is relatively weak,Upside-down,the overall risk management atmosphere is poor,and there is no good risk management culture.In addition,there is no special person to monitor and manage the customer's credit situation,and the account collection is not timely enough.The combination of these reasons has caused the company's financial risk problems to be effectively solved for a long time,which is not conducive to the healthy development of the company in the future.If a financial crisis occurs,it may not be able to respond in time due to lack of financial plans.Therefore,it is of great significance to carry out financial analysis and construct a financial risk control system and early warning mechanism for it.In order to solve these problems,this paper proposes a financial risk management framework that includes five aspects: setting management objectives,defining responsible subjects,optimizing procedural methods,improving management foundation and building a safeguard system.It sets up financial early warning indicators and constructs a financial early warning model.And put forward implementation recommendations.Through the implementation of the financial risk management framework,Shanghai Linuo Industry & Trade Co.,Ltd.will be able to protect cash flow,improve asset use efficiency,reduce costs,and then fundamentally solve problems,improve the ability to withstand risks,and ensure the company's sustainable development and profitability.