Early Warning Study On Financial Risks Of GD Companies

Against the background of the global energy low-carbon trend and industrial development low-carbon trend,the implementation of the "dual carbon" work has had a profound impact on the economy.The Central Committee of the Communist Party of China and the State Council have implemented a new round of reform of the electric power system,and systematic changes have taken place in the material and technological bases of the electric power industry,which has brought enormous challenges to the development of electric power enterprises.The pattern of multiple competitive entities in the power industry has initially taken shape,bringing economic benefits to enterprises while also bringing risks,such as increased cost consumption,unstable production and operation management,etc.Enterprise financial risk management,as an important component of enterprise risk management,can increase effectiveness of enterprise decision-making.Therefore,it is urgent to adapt to the new development requirements,timely warn and take effective measures to reduce the probability of financial risks.As a large-scale energy supplier in Shaanxi Province,GD Company owns thermal power,hydropower,nuclear power,and new energy assets,and its development is affected by macroeconomic policies,regional economy factors.Therefore,this paper selects GD company as the research object and firstly summarizes the domestic and foreign literature,related concepts and theoretical foundations.Then,from the perspective of financial management activities,we analyze the four risks of GD Company: investment,financing,operation and profitability,analyze the causes of its financial risks,and refine the sources of risks.We also investigate the current situation of GD’s financial risk early warning,and find that it lacks an effective financial risk early warning system,the risk early warning indicators lack comprehensiveness,and the financial risk early warning method is single.On the basis of the original financial indicators of GD,we selected financial indicators that differentiate GD’s financial status,and non-financial indicators that evaluate GD’s technology usage,equipment operation efficiency and production management,namely average equipment utilization hours,standard coal consumption and power plant electricity consumption rate.And through the reasonable improvement of the traditional efficacy coefficient method,the financial risk early warning system of electric power enterprises is established.On this basis,the built early warning system is used to calculate the early warning alert values of GD’s financial risks from 2017 to 2021,and the results of the early warning alert values are derived to match its financial risk status.Finally,from the perspective of financial risk early warning,four measures are proposed for enterprises to guarantee the application of their own financial risk early warning system.The main research results of this article are as follows:(1)A relatively practical financial risk early warning indicator system has been constructed,which can comprehensively calculate the financial risk early warning alarm value of GD Company in practical applications,and improve the financial risk early warning ability of GD Company;(2)By studying the financial risk early warning situation of GD Corporation,this article proposes to use improving internal control system,establishing multi-level early warning cycle,optimizing information feedback channels,real-time risk early warning and two-way adjustment of enterprise strategy" as the guarantee for apply GD’s financial risk early warning indicator system;(3)GD Corporation has rich operating experience in electric power enterprises,and the problems it faces are representative and universal in the industry.Therefore,the research conclusions and safeguards of this article can provide reference for other electric power enterprises’ financial risk early warning.