Study On Financial Risk Management Of Enterprise Diversification Strategy

Due to the fierce market competition,many enterprises take the strategic policy of diversified expansion in order to enlarge the scale of the industry and widen the income of the enterprises.However,through the advantage of horizontal scale expansion to intercept the returns in the industry,the use of diversification strategy should first be more professional management efficiency and strong financial strength is the prerequisite for most enterprise groups to adopt the diversification strategy.However,when most enterprise groups adopt diversified development strategies,they often fail to notice the financial risks they face.Scholars at home and abroad have done a lot of research on this point.Foreign scholars studied the impact of financial risk management on enterprise operation,and concluded that enterprises should improve their risk management ability and improve management measures,so that enterprises can operate normally.Domestic scholars believe that improving the ability of financial risk management is the top priority in the diversification strategy of enterprises.For the long-term development of enterprises,it is necessary to guard against potential financial risks.Through literature analysis,this paper first summarizes the research status and theoretical background of the diversified enterprise strategy model.Secondly,the paper expounds and classifies the relevant research on the financial risks of the enterprises in this mode,including the relevant definition and discussion relying on making a clear exposition.Then this paper takes the method of case study as the foothold to analyze the status motivation of the application diversification of Weiwei Food and Beverage Co.LTD.(hereinafter referred to as "Weiwei Shares").On the basis of the enterprise's own advantages and industry characteristics as the conditions for the financial risk management system research.In this part,through the application of risk management theory,the identification,assessment,prevention and control of the financial risk of the case company Weiwei shares are thoroughly studied.This paper focuses on various financial indicators of Weiwei shares,and takes the application effect of the enterprise's diversification strategy as the analysis background,so as to obtain a number of financial risks obtained by the case company in the application of diversification strategy.After that,a set of survey questionnaire was designed and promoted and distributed to professionals in related industries.The weights of different evaluation indexes in the questionnaire are determined by the analytic hierarchy process.After the above steps,the efficiency coefficient analysis method can be used to build a model or system of the degree of financial risk change of Weiwei shares under the diversified strategic background mode to carry out relevant research.Then it further analyzes the reasons for the existence of financial risks in its diversified strategies according to the "Enterprise Risk Management--Integration of Strategy and Performance" published by COSO in 2017.The assessment results are of medium risk level,with relatively unstable financial status,obviousabnormal indicators and relatively high risk probability.Through further analysis of the reasons,it is found that the strategy of too fast diversification increases the enterprise's finance.Diversification of the scale of growth strategy to increase corporate finance;The diversification strategy of diversified industries increases the financial risk of enterprises.Finally,according to the content,the deficiencies in the implementation of the diversification strategy of Weiwei shares are proposed.It is concluded that the research on the current financial risk and risk control management of Weiwei Shares is in line with the development ideas of listed companies,and can also provide reference guidance for more similar companies in the process of applying diversification strategy.