Study On Financial Risk Of Energy Conservation And Environmental Protection Industry

The energy conservation and environmental protection industry ranks first among China’s seven strategic emerging industries,and is one of the important industries to promote China’s economic upgrading and achieve the goal of building a moderately prosperous society in all respects.Under the active support of relevant national policies,energy conservation and environmental protection enterprises have entered a stage of rapid development,and their industrial scale has expanded rapidly,ushering in the industry’s spring.At the same time,the enterprises in the industry are facing many challenges,such as fierce market competition,shortage of capital and lack of innovation ability.In this case,it is very important to identify and control the financial risk of energy saving and environmental protection enterprises.If the enterprise cannot timely identify its own financial risks and take effective measures to control them,the enterprise may get into financial difficulties or even go bankrupt.Therefore,studying the financial risks of the energy conservation and environmental protection industry has important practical significance to promote the sustainable and healthy development of the industry.In this paper,taking Xingrong Environment as an example,the financial risks faced by enterprises and their existing control activities are analyzed and considered.Firstly,in the literature review section,the relevant theories of financial risk at home and abroad are summarized,including the theories of financial risk management,financial risk assessment and financial risk control.Then,the paper introduces the development status,industry characteristics,financial risks and their causes of the energy conservation and environmental protection industry,which provides a theoretical basis for the analysis of the financial risks of the case company.Then in case analysis part,this article adopts the method of combining qualitative and quantitative research,through the recognition of Xingrong Environment financial risk analysis,found the company in the production and operation of fundraising risk,franchise expires to contract risk,industry for the environmental risk is lesser,investment risk,liquidity risk,capital recovery risk.Then it analyzes the control measures of financial risk in Xingrong Environment,and summarizes the advantages of the company in financial risk control,such as reasonable capital structure,diversified financing channels,relatively perfect related system,good relationship with the government,and fine management mode.At the same time,there are some problems such as the low effectiveness of some systems and the imperfect financial risk control mechanism.In view of the above problems,this paper puts forward Suggestions to improve the effectiveness of the internal control system,improve the financial control mechanism and establish a reasonable financial risk early warning system.Finally,based on the analysis of the case of thinking,to energy conservation and environmental protection industry enterprise to control financial risk focus on fundraising risk,keep good relationship with the government,expand the financing channels,establishing and perfecting the financial risk control mechanism,improve innovation ability and so on,this for energy conservation and environmental protection enterprise financial risk identification,control the financial risk has a certain practical guiding significance.As I am not a formal employee of Xingrong Environment,but have been an intern for a period of time,I may not have a deep understanding of relevant issues of the enterprise,and some conclusions of analysis and thinking may not be applicable to all enterprises in the energy conservation and environmental protection industry.In the follow-up research,I will further analyze and think about the financial risks of energy conservation and environmental protection enterprises such as Xingrong Environment,and constantly improve my analytical thinking ability.