Research On Financial Risk Control Of Angang Group

In today's era,the process of globalization is accelerating day by day,the national policy continues to reform,and the internal and external economic environment of the steel industry changes significantly.In recent years,An steel Group has experienced a continuous decline in production and sales,a continuous decline in steel prices,and a decrease in fixed assets year by year in its operation process.It has suffered certain losses in economic development,a large scale of debt,weak solvency,and difficulties in financing.It can be seen that Ansteel Group faces more risks and challenges in the fluctuating market environment,so the enterprise needs to pay more attention to the effective control of financial risks.This paper selects An yang Iron and Steel Group to study its financial risk control through case analysis,studies the many risks it faces in the new economic pattern,and puts forward the corresponding optimization opinions according to the risk.Firstly,through the analysis of assets and liabilities,profitability,cash flow and related financial indicators of An steel Group in the past five years,the current financial situation of the enterprise is understood.The problems in the financial aspect of the enterprise are found to be: unreasonable debt composition,weak solvency,low asset turnover,and large fluctuation of cash flow;By analyzing the status of risk control,it is found that the existing problems of enterprise risk control include: failure to identify risks effectively,low sensitivity of response to environmental change,lack of effective supervision of risk control.Subsequently,this paper uses entropy weight method combined with efficiency coefficient method to carry out risk assessment on the enterprise,and builds a risk assessment model.According to the risk assessment results,the overall risk index of the enterprise and the influence degree of each type of index on the financial risk of the enterprise can be obtained more objectively.Through the analysis of the evaluation results,it is found that there is a medium risk in the enterprise as a whole,and the high debt repayment risk is the main reason for the outstanding financial risk of An steel Group.Among them,the quick ratio,asset-liability ratio and total asset turnover ratio performed poorly,while the cash-flow liability ratio fluctuated greatly,which exacerbated the financial risks of enterprises to a certain extent.Finally,in view of the financial risk of An steel Group and the lack of risk control,this paper puts forward some suggestions to improve the risk control of An steel Group: strengthen the enterprise's financial risk awareness,enhance financial ability,improve the financial risk early warning system and improve the financial risk supervision mechanism.In order to provide effective suggestions on risk control for iron and steel enterprises and promote the sustainable development of iron and steel industry.