Evaluation Of Financial Risk Of BH Based On AHP

As one of the basic industries of the national economy,paper industry is closely related to the social and economic development and people's living needs,and is internationally recognized as a "never-failing" industry.The paper industry has a strong industrial relationship and is influenced by the national environmental protection policy and the macro-economic cycle.In recent years,with the depression of China's economic development and the strengthening of environmental protection policies,the financial risks of paper enterprises have been emerging,such as the imbalance of capital structure,lack of funds and reduced profitability.BH company has suffered from the deterioration of financing environment and the difficulty in capital turnover since 2013.The main business of papermaking of the company has low benefits,unreasonable product structure,prominent contradiction between supply and demand in stages,and sharply increased financial risks.Therefore,it is of vital importance to reduce financial risks and improve financial management level in order to enhance enterprise productivity and core competitiveness.Based on the theory of financial risk management,this paper uses literature research,case analysis and other methods to analyze the causes of the problems in the financial risk management of BH company,and uses the financial data of BH company from 2014 to 2018,combined with the analytic hierarchy process,to select the ones that can reflect the solvency,operating capacity,cash flow capacity and profitability The first level indicators of capacity and development capacity,as well as 15 second level indicators,establish financial risk evaluation model,invite paper industry and financial management experts to compare the importance of the indicators,build a judgment matrix to get the weight of the indicators,calculate the evaluation results of BH company based on the quantitative value and weight value,and finally put forward a series of optimization suggestions.The results show that the main causes of BH's financial risk are imbalance of capital structure,high current liabilities and low inventory turnover.According to the specific financial risks of BH company,the optimization measures of financial risk management are proposed.There are mainly to broaden the financing channels to enhance the level of financing risk management,take multiple measures to strengthen the risk management of working capital,improve the budget process to ensure the effectiveness of cash flow management,rational investment to enhance the ability to resist financial risks,improve the company's internal control system to establish financial risk awareness,so as to improve the level of financial management.