Research On The Current Situation Of Financial Risk Management And Countermeasures Of Company D

The electric power industry as a basic energy industry to maintain the livelihood of the country,in which the application of electric power equipment manufacturing throughout the electric power industry chain,maintaining the healthy development among the industry,while providing basic support for the electric power system,it also plays an important role in the national economy.Since the 18 th National Congress of the Communist Party of China,the country has accelerated the speed of market-oriented reforms across the industry.In order to ensure the sustainability of business operations and development,the electrical equipment manufacturing industry should participate in market competition gradually.Facing today’s complex market environment,as well as economic development and the expansion of infrastructure construction,the demand for electrical equipment in China is increasing year by year,enterprises are facing the acceleration of product updating,improving various technical indicators,production equipment and processing technology need to be improved,which makes enterprises pay more attention to financial risks and enhance the ability to respond to risks in the electric power equipment manufacturing industry.This paper describes the concepts related to financial risk,financial risk management and hierarchical analysis,supported by system theory,principal-agent theory,internal control theory and comprehensive risk management theory,uses literature induction,case study and quantitative analysis,based on the current status of domestic and international research,this paper analyze the current situation of financial risk management of Company D and propose corresponding countermeasures.Firstly,it analyzed the basic situation of Company D and the company’s operation.Then we identify the company’s external financial risks through the policy,industry,market and natural climate,analyze the company’s internal profitability,solvency,operation capacity and growth capacity by combining the traditional index analysis method,and apply the Du Pont analysis method to conduct a comprehensive analysis of Company D’s finance to identify the company’s internal financial risks.And based on the hierarchical analysis method,16 indicators are selected from four aspects of financing risk,investment risk,operation risk and earnings distribution risk to build a financial risk evaluation model of Company D.Combined with the fuzzy comprehensive evaluation method to derive each evaluation value,the level of financial risk of Company D is reasonably evaluated,and the current situation and causes of the company’s financial risk are further analyzed.Finally,we propose reasonable and effective financial risk control countermeasures for Company D in four aspects: financing risk,investment risk,operation risk and earnings distribution risk,taking into account its actual situation.This paper is based on scientific methods to achieve financial risk management in Company D,which not only promotes the smooth operation of Company D’s financial system,but helps the company achieve good business results.Moreover,the research method used in this paper broadens the depth of research on financial risk management in power equipment manufacturing enterprises.Other enterprises can refer to the financial risk management process of Company D,identify and evaluate their own financial risks on this basis,and propose control measures for the existing financial risks to improve their ability to cope with risks and protect the sustainable development of enterprises.