A Case Study On Financial Risk Management In Z International Trading Company

With the warming of global commodity markets since 2017,trade activities have gradually become more active compared with the previous stage.Uncertainty in the process of economic globalization will affect the profitability and even survival of enterprises.However,in the process of continuous operation,the biggest risk that enterprises are facing is financial risk.Z International Trading Company has the attributes of state-owned enterprises and is the second-level unit of S Group Company.In April 2017,Z Trading Company initially completed the construction of risk management system,hoping to better control risks,adapt to the market environment,in order to carry out steady-state development and transformation and upgrading under the new condition.This paper analyzes the financial risk management case of Z International Trading Company.Firstly,this paper introduces the definition,characteristics and classification of current financial risks,as well as the objectives,identification,evaluation and management control of financial risk management.Simultaneously,this paper introduces the specific financial situation and risks of Z International Trade Company,and studies the countermeasures and management methods in its risk management system.Finally,through the research,it was found that the financial risk management system of Z International Trading Company had problems in the management awareness of managers,the perfection of management system,the selection of management process and management indicators in the specific operation,and even lacks the risk assessment process in a strict sense.In view of the problems existing in the organization structure,risk classification and execution of Z International Trading Company's financial risk management system,such as unclear definition of financial risk management responsibilities,unclear classification of financial risks,lack of risk assessment links in a strict sense,huge post-event management costs,etc.,the author puts forward a clear definition of management responsibilities,optimization of approval process and management system,and scientific division of finance.Four suggestions and suggestions for improvement are put forward,such as the types of risks,strengthening the awareness of financial risk management,standardizing the process of risk assessment,regularly carrying out supervision,and establishing a financial risk early warning mechanism.At present,there are few studies on financial risk management of state-owned international trade companies.The purpose of this paper is to give Z International Trading Company some suggestions in the process of improving its risk management system,and to provide reference for enterprises in the same industry.The contribution of this paper is to conduct a detailed study on the financial risk management of international trade companies with relatively few studies.According to the specific situation of the financial risk management of the case entity,through the analysis of its financial status,management mode and management effect,this paper summarizes the problems and causes of its financial risk management,and gives corresponding suggestions from the practical application level,and provide some reference for the case entity and its industry in improving financial risk management.The case entity has a short time to implement financial risk management and the author hopes to further understand and research in the future.