Management Research On The Financial Risk Of Company F Based On COSO-ERM Framework

Because of the financial fraud scandal,caused the collapse of Enron Corporation and World Communication.And then,Time Warner Incorporated 、Health South America、 Parmalat、 Adelphia were accused of accounting fraud or punishment in different degrees.On the other side of the globe,a similar scandal about Olympus has been happened again in ten years.In China,this kind of phenomenon are emerging in corporation.For example,we were shocked by Huishan Dairy financial fraud in 2017 、 Kangmei Pharmaceutical were filed in 2018 and Luckin Coffee accounting fraud incident in 2020.All of the weak link because of the financial risk management and risk control and made me think.Focus on the auto manufacturing industries,just investigate and survey one company can not find something wrong with the data.But when put the data on the whole auto manufacturing industries and comparison to peer competitor,you will find that under the times change and policy impact,the market structure、marketing tools 、 policy support are changing in the auto manufacturing industries.For example,introduce new emission standards 、 the impact of new energy policy 、outbreak of coronavirus.The reform is taking place,solution of the financial risk is change the countermeasures.FAW-VW and BYD AUTO can adapt to the development of the times to innovate new ideas and risk prevention so that they can find a place in the new market.Improving financial risk management capability and reducing financial risk are the most critical step to F Corporation’s development.In this paper,F Corporation as a case study,combine the new circumstance to find the new financial risk.The risks are unsystematic risks.According to financing risk,investment risk,operational risk,profit risk,analysis the company’s potential financial risk.And then through a comprehensive business analysis and data analysis by using Z-SCORE model to find that whether F Corporation’s production and operating activities is in good condition or not.According to actual needs giving advice and making effective suggestions to control financial risk.Making F Corporation’s production and operating activities in the safe range.