Hunan M Environmental Protection Technology Enterprise Financial Risk Analysis And Control Research

With the accelerating process of global industrialization,China’s economic development level,urbanization and industrialization level are also constantly improving.It is no longer possible to achieve sustainable economic development by taking endless exploitation of natural resources,inefficient use of natural resources,and high pollution and environmental damage as the cost of economic growth.At present,it is an inevitable choice for enterprises to find a new sustainable development model that can adapt to economic development and protect the environment.In recent years,China has paid more and more attention to ecological and environmental protection.However,there are also many problems in the development process of environmental protection industry,such as poor management mechanism,strong dependence on policy,difficult financing,cash flow shortage,long research and development cycle and low conversion rate of patent results,lack of power for research and development technology,etc.At present,it is in the construction period of the "14th Five-Year Plan" and the critical battle of pollution prevention and control.Under the premise of optimizing the financing environment and releasing the market demand of the industry,environmental protection enterprises have a good momentum of development.Based on the overall industry development background,environmental protection listed companies to maintain stable development,is bound to be cautious to deal with risk issues,risk identification,risk evaluation and risk control.Based on the theory of financial risk management,cash flow theory,theory of financial risk conduction,select a representative enterprises in hunan environmental protection industry,M environmental technology co.,LTD.,from the perspective of corporate cash flow,respectively from the operating,financing,investment,income distribution,the four levels of M company financial risk identification and analysis,Through identification and analysis,it is found that there are many problems in the current risk management of M Company and it is easy to fall into operational crisis,such as weak risk prevention awareness and poor risk response ability.Then,this paper uses the factor analysis method to construct the financial risk evaluation model of M Company,aiming at scientifically quantifying the financial risk level of M Company.The study found that M Company ranked 17 th among the 24 environmental protection enterprises with an F value of minus 0.172,which was at the middle and lower level.Management should pay attention to the current financial risk,take measures to control and reduce financial risk.Finally,according to the evaluation results,this paper puts forward control opinions on the financial risks of M Company from the aspects of operation,financing and investment.The purpose of this study is to help enterprises improve their ability to identify and control financial risks and ensure their sustainable operation.At the same time,it also has certain reference value for other companies in the same industry.