2018DEStech Transactions on Economics Business and ManagementRequires access

Research on Financial Risks and Prevention Strategies for Logistics Enterprises

Cheng-xiao Ju

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Abstract

Logistics enterprises face problems of the large scale of infrastructure and the long cycle of capital recovery. It is much likely for them to have financial risks. In the process of financial risk control, logistics enterprises in China face problems of irregularity of financial management activities, difficulty in external financing, the weak ability of making profits, the lack of awareness of financial risk prevention and an effective system of internal financial risk control. Logistics enterprises should improve financial management systems of logistics enterprises, strengthen credit accumulation, improve the financial environment, focus on improving enterprises’ ability of making profits and improving financial management’s risk awareness and quality, and improving enterprises’ internal financial risk control systems, so as to improve the ability of fighting against risks.

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What this paper is about

Logistics enterprises face problems of the large scale of infrastructure and the long cycle of capital recovery. It is much likely for them to have financial risks. In the process of financial risk control, logistics enterprises in China face problems of irregularity of financial management activities, difficulty in external financing, the weak ability of making profits, the lack of awareness of financial risk prevention and an effective system of internal financial risk control. Logistics enterprises should improve financial management systems of logistics enterprises, strengthen credit accumulation, improve the financial environment, focus on improving enterprises’ ability of making profits and improving financial management’s risk awareness and quality, and improving enterprises’ internal financial risk control systems, so as to improve the ability of fighting against risks.

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Available abstract

Logistics enterprises face problems of the large scale of infrastructure and the long cycle of capital recovery. It is much likely for them to have financial risks. In the process of financial risk control, logistics enterprises in China face problems of irregularity of financial management activities, difficulty in external financing, the weak ability of making profits, the lack of awareness of financial risk prevention and an effective system of internal financial risk control. Logistics enterprises should improve financial management systems of logistics enterprises, strengthen credit accumulation, improve the financial environment, focus on improving enterprises’ ability of making profits and improving financial management’s risk awareness and quality, and improving enterprises’ internal financial risk control systems, so as to improve the ability of fighting against risks.

Key concepts: Business, Finance, Financial risk, Control (management), Risk management, Quality (philosophy), Financial management, Financial risk management

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