Study On Financial Risk Management Of Lenovo Group

Along with more and more Chinese companies going abroad,they must encounter with more complicated external environment,causing great challenges to the firm's business management and capability of the risk managing.Especially,in recent years,in order to contain the growth of China's science and technology,the western countries led by the United States have adopted a series of measures including imposing tariff on China's multinational science and technology firms,listing them in the entity list,restricting the export of key technologies,imposing economic sanctions,as well as science and technology blockades,etc.,which pose a slew of barriers for the Chinese international science and technology companies.Thus,in order to achieve a sustainable development,the cross-border companies must strengthen their risk management.Having been founded for more than 36 years,Lenovo Group is deemed as one of the most successful and earliest Chinese companies going abroad.However,in recent years,Lenovo Group has been undergoing serious financial risks due to the rapid growth of the industry,intensified competition among the firms,as well as increased uncertainty of the global macroeconomics,forcing the company paying higher attention to the risk management.This thesis takes Lenovo Group's financial risk management as a study point of penetration,starting with depicting risk identification and their reasons of formation.Based on those analysis and study effort,various measures are proposed for the company to deal with the financial risks.This thesis begins with introducing the basic theory of financial risk and the firm's situation in general and financial risks in specifics.The three basic financial statements are used in analyzing firm's overall financial situation.The types and causes of those risks formation are depicted basing on three dimensions involving financing activity risk,investment activity risk and operation activity risk.Then,the fours aspects are utilized in assessing the firm performance including profit-earning capability,operation ability,debt paying ability and growing capability.Finally,this study proposes the measures used in dealing with the financial risks by Lenovo.