Research On Financial Risk Management Of Jiangsu Xianghe Steel Trade Enterprise

In 2018,there were a series of trade disputes between China and the United States.In 2020,the new crown epidemic that affected the world broke out.These fluctuations had a significant impact on the production and operation of enterprises and social order.In this case,some enterprises went bankrupt due to the broken capital chain.It can be seen that financial risk management plays a very important role in the survival and development of enterprises.Taking Jiangsu Xianghe steel trading company as an example,this paper introduces the related concepts of financial risk and financial risk management through the research of domestic and foreign research status of enterprise financial risk management and risk management theory.The theory and COSO-ERM theory are sorted out as the cornerstone of the research on the financial risk management of Jiangsu Xianghe steel trading enterprises.Then this paper uses literature analysis method,case analysis method,induction method and other methods to analyze the financial data of Jiangsu Xianghe steel trading enterprise,summarizes the current situation of financial risk management of Jiangsu Xianghe steel trading enterprise,and analyzes the existing problems in its management according to theory.The specific problems include the inadequate implementation of risk management mechanisms,the lack of financial risk identification and assessment capabilities,the imperfect financial risk early warning mechanism,the lack of financial risk response management and control capabilities,and the unreasonable impact of financial activities on financial risk management.This paper analyzes the causes of the financial risk management problems of Xianghe Steel Trade from five aspects: process,risk management methods,enterprise internal control and external environment.Finally,according to the analysis of the problems and the causes of the problems,it puts forward the measures to deal with the financial risks and risk management and control of Jiangsu Xianghe Steel Trade Enterprises.