Research On Financial Risk Control Of BJ Company

In the recent past,the steel structure industry in China has gradually embraced the green concept and environmental protection strategies while concurrently adopting safe usage norms through vigorous promotion.With the ultimate goal of economic construction,China’s steel production has witnessed sustained growth since Reform and Opening-up.On the global scale,the sector has been ranked first since2000.In general,actively promoting steel structures is instrumental in building ecological civilizations and fostering green development.Additionally,such genuine efforts will positively impact the supply chain,encourage structural reforms,and aid in achieving industrial transformation.However,the unprecedented development of the steel structure industry has inadvertently led to various problems.For instance,the entry of numerous firms in the steel structure industry has culminated in fierce competition.Nevertheless,factors such as intensified industry competition give rise to fluctuations in raw material prices.Finally,downstream industry demand contingent on the macroeconomic environment and financial risks faced by the steel structure industry cannot be disregarded.In this article,the selected research object is BJ Company;a steel structure industry enterprise.Based on extensive research from various literary sources,the article comprehensively reviews existing research results on financial risk control.Accordingly,BJ Company’s current predicament,financial status,and industrial ranking can be inferred.In particular,BJ Company can be distinguished as a family business,wherein its steel structure industry is characterized by low gross profit margin,high attractiveness,and greater industry barriers.Through leveraging the financial ratio analysis method,this thesis analyzes the financial statements of BJ Company over the past five years.By virtue of meticulous assessment,it is evident that BJ Company is susceptible to grave risks in domains like financing,investment,and operations.With reference to the identification of financial risks,the Z-score model is selected to evaluate and analyze the financial risks of BJ Company with the goal of formulating a financial risk evaluation system.While the Z-value is contingent on the model formula,subsequent steps include determining the range of the Z-value of BJ Company,evaluating its risk level,and incorporating the F-score model to supplement the verification findings.According to the results,BJ Company is mandated to address its financial instability.As stated in the article,factors like the adoption of a single financing channel,unsatisfactory feasibility analysis of investment projects,insufficient operational cash flow,and inadequate research and development of cutting-edge products contributes to a greater degree of financial risk.Subsequently,the article proposes potential risk management and control measures for BJ Company from the perspective of investment,financing,operation,and growth.For instance,optimizing the capital structure,broadening financing channels,improving the planning and management of investment funds,strengthening operation and management guidance,and emphasizing innovation would prove to be effective.Optimistically,implementing the aforementioned measures will greatly facilitate improvements towards the financial risk control level of BJ Company,thereby promoting stable levels of growth.Furthermore,the company can strive to become a benchmark enterprise in the steel structure industry and provide reference significance for other aspiring firms in the sector.