Research On Financial Risk Management Of IQiyi Based On COSO-ERM

With the COVID-19 outbreaking and the application of the 5G technology spreading in recent years,the Internet video industry for opportunity,but as a video industry leading enterprises,and in 2020 the stock market at home and abroad present "bull market" situation,IQiyi by short-seller muddy waters,Wolfpack abroad "siege",not only IQiyi shares tumbled several times in a short period of time and 2021 also saw unusual signs of financial risk,such as mass layoffs.In recent years,the international capital environment is turbulent.Chinese concept stocks represented by IQiyi not only face challenges in their own operation,but also face severe market environment overseas.Therefore,it is very necessary to study the financial risk management of IQiyi.This paper adopts the method of case analysis,takes IQiyi,an Internet long video website,as an example,combines with the risk management framework of COSO-ERM(2017),from the mission,vision and core values,strategy and business objective planning,Analyze and study IQiyi’s financial data,non-financial data and operation and investment in the past five years from the perspectives of risk,performance and value enhancement,and identify hidden financial risks that cannot be identified by traditional financial risk identification methods,as follows:In terms of mission,vision and core values,the board of directors lacks professionalism,does not give full play to its supervision responsibilities,the implementation of organizational culture and core values is not deep,talent attraction is insufficient,and talent training and management are unscientific;In terms of strategic and business goal planning,the internal and external business environment is unclear,the positioning and expression of risk preference are unclear,and there is great resistance to achieve business goals;In terms of risk and performance,the loss is serious and lasts for a long time,the problem of financing and debt repayment,and the correlation between salary,performance and risk is not high;And in terms of value promotion,financial value is not optimistic,non-financial value needs to be improved and other financial risks.On the basis of financial risk analysis and evaluation,this paper puts forward four suggestions,including(1)Mission,vision and core values,defining a good organizational culture,establishing an organizational and operational structure suitable for the enterprise,scientifically attracting,cultivating and managing talents,and paying attention to reputation management;(2)In terms of strategy and business goal planning,we should pay attention to the clarification,formulation and revision of strategy and risk preference,pay attention to the positive and negative effects of policies,scientifically and prudently merge and acquire,and improve investment efficiency and effect;(3)In terms of risk and performance,reduce costs,strive to generate income,expand financing channels and set up a "capital pool" to alleviate the pressure of financing and debt repayment,combine risk and performance through the risk performance curve,increase the weight of profit in performance appraisal and truly link salary and performance;(4)In terms of value improvement,we should improve shareholders’ income,improve financial information disclosure,establish and apply information and technology systems,pay attention to content innovation to improve financial value,and pay attention to climate information disclosure,brand value management and core competitiveness management to improve non-financial value.