Study On Financial Risk Evaluation And Prevention Of YQ Steel Company Under The New Situation

As China’s economic development speed increases year by year,the intensity of competition among enterprises is also rising.In this tense economic background,enterprises not only bear huge financial risks,but also lead to the hidden danger of economic crisis.This requires the enterprise should be the foothold of management work on the financial risk,focus on this management goal,and for the implementation of the corresponding management measures to achieve the purpose of controlling the financial risk.As a key element for the smooth operation of an enterprise,capital has an influence on the enterprise just like the force of blood on the human body,and is the cornerstone for the benign development of an enterprise.The quality of capital operation directly affects the level of financial risk of an enterprise.Compared with most industries,the iron and steel industry is in a relatively high positi on in terms of capital demand,which is a capitalintensive industry,and the possibility of financial risks is relatively large.Structural reform policy on the supply side,meanwhile,urging,supply and demand contradiction extreme industry has become the reform of the battle of the bull ’s-eye,and with the old and the new kinetic energy conversion economic strategy is put forward,the steel industry in our country became the first reform from the battle of the highland directly,plus the development of iron and steel industry of our country economy the strategic deployment and adjustme to have the profound significance.Therefore,it is very important to evaluate and prevent the financial risk of iron and steel enterprises.This paper takes YQ Iron and Steel Company as an example to study the financial risk of the enterprise.First of all,the WBS-RBS risk identification matrix method and combined with the financial statement data are used to analyze the financial risks faced by the enterprise from the two perspectives of the external macro environment and its own financial situation.Secondly,non-financial indicators and financial indicators are integrated through AHP to achieve the purpose of quantitative analysis of financial risks.Among them,the risk score value of financial indicators was determined by the improved efficiency coefficient method,and the risk score value of non-financial indicators was determined by the expert scoring method.Finally,a comprehensive index is obtained by adding the above two scoring values to judge the risk degree of the company,and the conclusion is drawn that the risk level of YQ Iron and Steel Company has been at a moderate risk in the past decade through the evaluation results.Through the above research and analysis,it can be seen that single financing means,excessive debt scale and low investment rate of return are the main reasons for the financial risks of YQ Steel Company.At the same time,the backward inventory management mode and the low level of production technology also lead to the lack of efficiency of enterprise capital operation.In addition,the national industrial policy also has an important impact on the generation of financial risk.Subsequently,based on the above financial risk identification and evaluation results,this paper puts forward targeted financial risk prevention measures for YQ Iron and Steel Company,in order to provide some reference for the financial risk management of YQ Iron and Steel Company.