Research On Financial Risk Management Of A Asset Management Company

Financial asset management companies are established to prevent and resolve major financial risks and maintain overall economic stability.As the main battlefield for the disposal of non-performing assets in local areas,local asset management companies must truly achieve the goal of helping local governments overcome difficulties,problem-solving institutions,and solving difficulties for physical enterprises.It is incumbent upon them to take the resolution of financial risks as their primary responsibility.In recent years,due to the multiple impacts of the epidemic and economic downturn,China’s macroeconomic growth has slowed down,the scale of non-performing assets in financial institutions has increased,the quality of asset packages has seriously decreased,and the difficulty of disposal has significantly increased,posing great financial risks and hidden dangers to asset management companies.The company’s development is facing immediate challenges.Therefore,local asset management companies must attach importance to their own financial risks,actively identify and evaluate financial risks,and take effective financial risk control measures to resist internal and external business pressures.This study selected A Asset Management Company as the object to study various financial risks in its operation and management.Firstly,by reading a large amount of literature,learn the relevant knowledge involved in the research,understand the concept,characteristics,and influencing factors of financial risk,learn the financial risk management process and risk identification methods,and lay a solid foundation for future research.Then,based on the financial statements of Company A from 2017 to 2021,a preliminary analysis is conducted on the company’s balance sheet,income statement,and cash flow statement,identifying financial risks from the perspectives of debt repayment,operation,profitability,and development.Next,12 financial risk indicators were selected from four aspects:debt paying ability,operational ability,profitability,and development ability.The weights of each indicator were calculated using the entropy weight method,and the industry standard values for enterprise performance evaluation were used as reference.The improved efficacy coefficient method was used to calculate the comprehensive financial risk score.Finally,the overall financial risk level of the company and the financial risk level of each indicator were calculated and judged.After analysis,Company A’s financial risks have deteriorated significantly in recent years,reaching a level of significant risk by 2021.The company faces problems such as unreasonable debt structure,single financing channels,inefficient asset use,weak profitability,and inadequate operational management.It is recommended that Company A develop a reasonable development strategy in the future,gradually optimize its capital structure,enhance its ability to dispose of non-performing assets,expand financing channels,strengthen investment management,formulate reasonable internal control management measures,and comprehensively help the company control and prevent financial risks.I hope that this study can provide substantive assistance to Company A’s future financial risk prevention,promote its sustainable development,and better serve the local economy.