Research On The Prevention Of Financial Risks Of Oriental Garden Company

With the transformation and upgrading of the economy,pollution prevention and improvement of environmental quality have become one of the “three major battles”of the central government,and industries such as ecological restoration and environmental protection are developing vigorously.However,due to the late start and rapid development of China’s environmental protection industry,coupled with the special attributes of environmental protection business,research on the control and prevention of its financial risks has been constantly improving.This article first explains the related theory of financial risk,as well as the research status at home and abroad,which lays a theoretical foundation for the research of the thesis.Combined with the operation and financial status of Oriental Garden Company,and using the financial index analysis method,the company’s possible financial risks are identified from the four levels of financing activities,investment activities,operating activities and cash flows,combined with industry policies and the company’s own situation Analyze the causes of risks.Finally,based on the above analysis,the financial risk evaluation system of Oriental Garden Company was constructed,and the total score of the company and the scores of various activities were calculated by the efficiency coefficient method to determine the financial risk range of the company.The result of the scoring shows that the Oriental Garden Company is in the middle-police range,and there is a high possibility of financial risk,which needs to be focused on prevention.Finally,according to the analysis of the causes of risks,the countermeasures for the prevention of the financial risks of Oriental Garden Company were proposed.As a listed company specializing in comprehensive management of water environment,industrial hazardous waste disposal,and global tourism business,Oriental Garden Company has now become a leader among listed eco-environmental companies.However,due to changes in the financial environment and the particularity of the business model,it encountered an unprecedented liquidity crisis in 2018,and all indicators of the company issued warning signals.This article studies the financial risk prevention of Oriental Garden’s actual operation to help the company strengthen financial risk prevention,which is of great significance to its sustainable development.At the same time,the research in this article is based on the existing theoretical basis,targeted research on the financial risks of enterprises under specific business models,and specific analysis on the basis of the industry’s macro perspective,which strengthens the guiding significance of practice.