Analysis of financial risks and countermeasures: This paper introduces the manifestations of financial risks, analyzes the causes of financial risks, and finally puts forward targeted preventive measures on this basis.
First, the analysis of financial risks and countermeasures-the performance of corporate financial risks
The capital movement includes several links, such as capital raising, use, consumption, recovery and distribution. Generally speaking, financing, investment and profit distribution constitute the financial structure of an enterprise. According to the process of capital movement, the financial risk of an enterprise arises from the following links:
1), financing link
Different sources of funds and different financing methods will have different capital costs and corresponding risks. When raising funds, companies must weigh risks and costs in order to choose the best financing method. The ratio of debt to equity reflects the degree of financial leverage. The greater the financial leverage, the higher the return on net assets, but the greater the corresponding financial risks. The optimal capital structure is the capital structure suitable for the characteristics of the company after weighing the benefits and risks. In addition, strengthening the management of current liabilities can improve the efficiency of the use of short-term funds, reduce costs and ensure the daily production and operation needs. With the complex development of financial market, the constant change of financing decision-making environment and the more and more extensive application of financial derivatives, it will bring financial risks to enterprises.
2) Investment link
The Company's investable current assets include cash, trading financial assets, accounts receivable and inventory. So we need to make the best choice between liquidity and profitability. Excessive investment in current assets can improve the liquidity of funds, thus increasing the company's liquidity and solvency, but it will reduce the company's profitability and affect the capital turnover. Companies can also invest in long-term assets, such as fixed assets and long-term securities. Large capital investment projects usually take years or even decades to plan and implement. Because of the large amount of funds and the long time span, the future return of investment projects is uncertain, and there are great risks and uncertainties.
3) Capital operation link
At present, among the current assets of enterprises in China, inventory accounts for a relatively large proportion, and many of them are overstocked. Poor inventory liquidity, on the one hand, takes up a lot of funds of enterprises, on the other hand, enterprises have to pay a lot of storage costs for keeping these inventories, which leads to an increase in enterprise expenses and a decrease in profits. Long-term inventory, enterprises have to bear the losses caused by falling market prices and improper storage, which leads to financial risks. In the management of accounts receivable, enterprises generally only pay attention to sales performance, but ignore the control of accounts receivable. In order to increase sales and expand market share, some enterprises sell products on credit, resulting in a large increase in accounts receivable. At the same time, due to the lack of understanding of customers' credit rating and blind credit sales, accounts receivable are out of control, and a considerable proportion of accounts receivable cannot be recovered for a long time until they become bad debts. Assets have been occupied by debtors for a long time without compensation, which seriously affects the liquidity and security of enterprise assets.
4) Profit distribution link
Under the premise of the relevant laws and regulations, the company can independently arrange how much of the profits are used to pay dividends to shareholders and how much is used to retain the surplus as the capital for the company's further development, which forms the company's dividend distribution policy. The dividend distribution level is too low, and the short-term interests of shareholders can not be met; However, the dividend distribution level is too high, although it meets the recent wishes of shareholders, but it is not conducive to the long-term development of enterprises.
Second, financial risk analysis and countermeasures-the reasons for the formation of corporate financial risks
Financial risk exists objectively, and it is impossible for enterprises to eliminate it, so they can only take measures to minimize the harm of financial risk to enterprises. Fully understanding the causes of financial risks is the premise of taking effective measures.
External cause
The external environment of enterprise management is the external cause of enterprise financial risk, which mainly includes the influence of macroeconomic environment, policies and industry background.
1- macroeconomic environment and policy analysis
Whether in the long-term or short-term, the macroeconomic environment is the most basic factor affecting the company's survival and development. The economic benefits of the company will change with the changes of macroeconomic factors such as macroeconomic operation cycle, macroeconomic policy, interest rate level and price level. The macro-economy is running well, the overall profit level of the enterprise is improved, the financial situation is improved, and the financial risk is reduced; If the macroeconomic operation is not optimistic, the investment and operation of enterprises will be affected, profits will drop, and they may face financial risks.
When the national economic policy changes, such as adjusting the interest rate level, implementing the consumer credit policy, collecting interest tax, etc., the capital holding cost of enterprises will also change accordingly, thus bringing uncertainty to the financial situation of enterprises. If the interest rate level is raised, the enterprise may pay too much interest or fail to fulfill its debt service obligations, thus causing financial risks.