| Every listed company's business development is faced with various financial risk threats,such as excessive asset-liability ratio,uncollectible accounts receivable,and blind use of funds.However,most companies tend to focus only on investment,expansion,sales and other business operations,but ignore the management of financial risks.Enterprises must not only get money but also manage their money.Good financial management is an essential factor for the company to achieve long-term development.This paper selects Chongqing Lifan Industrial Company as the case study object.After combing the theoretical knowledge of portfolio theory and internal control theory,it uses the research methods such as literature analysis method and case analysis method to deeply study its financial risk management.Firstly,Lifan's financial risk was identified through quantitative analysis of Lifan's large amount of financial data from 2013 to 2017.This paper finds that the risks in financing,investment,operation and dividend distribution are the main financial risks of Lifan.Among them,due to the unreasonable financing channels of enterprises,and the lack of a reasonable financing structure,coupled with the unfavorable background of the current financing environment,Lifan faces certain financing risks;in terms of investment,the company ignores the rationality of investment and blindly diversifies investment.However,in the investment process,there is no sound internal control system.At the same time,due to the long payback period of overseas investment,these factors have jointly led to the investment risk of Lifan;in production and operation,Lifan's accounts receivable are in operating income.The proportion of accounts receivable has been relatively high,and accounts receivable have been poorly returned.In terms of inventory,Lifan is also facing the risk of backlog of parts and vehicles.Lifan's main business cost is high and production cost control is poor.The export business has a high proportion.The exchange loss caused by exchange rate changes every year also aggravates the business risk of Lifan.Finally,because Lifan is a typical family business,the phenomenon of “one big share” is more obvious,and it is easy for major shareholders to The act of self-interest infringing on the interests of minority shareholders.After identifying and elucidating Lifan's financial risks,this paper has developed a series of financial risk control programs.In terms of fundraising,we should avoid the problem of narrow financing channels and adopt a variety of financing methods to upgrade the capital structure.A complete control system should be set up to circumvent and respond to financing risks,choose appropriate financing methods,and broaden financing channels.In terms of investment,setting up a scientific investment risk management system is a very reasonable approach.Pay attention to the formulation of investment plans,strengthen the internal control of the investment process,do a good job of cost control of investment projects,and also pay attention to the risks of the internal and external investment environment of enterprises,and adjust investment plans in a timely manner.In the company's operations,improve the cash accounting and cash flow management system.In terms of inventory,a sound production plan should be formulated to improve the control of inventory;in terms of accounts receivable,it is necessary to strengthen the credit risk control of accounts receivable,strengthen the ability and strength of receivables collection;and face the disadvantages caused by exchange rate fluctuations.It is wise to prepare the exchange rate fluctuation risk response plan in advance.In terms of income distribution,a fair and reasonable dividend distribution plan should be formulated to formulate a dividend distribution policy based on the company's profitability and development plan.At the same time,Lifan should also listen to the opinions of minority shareholders and adjust the distribution of dividends. |
PDF Full Text Request