Title: An effectiveness analysis of enterprise financial risk management for cost control

Authors: Qing Cai; Xiangyin Qiu; Xiaojun Zhang

Addresses: Medical School, Hunan Polytechnic of Environment and Biology, Hengyang, 421005, China ' Business School, Hunan Polytechnic of Environment and Biology, Hengyang, 421005, China ' Business School, Hunan Polytechnic of Environment and Biology, Hengyang, 421005, China

Abstract: This paper aims to analyse the effectiveness of cost control oriented enterprise financial risk management. Firstly, it analyses the importance of enterprise financial risk management. Secondly, the position of cost control in enterprise financial risk management was analysed. Cost control can be used to reduce the operating costs of enterprises, improve their profitability, and thus reduce the financial risks they face. Finally, a corporate financial risk management strategy is constructed from several aspects: establishing a sound risk management system, predicting and responding to various risks, optimising fund operation management, strengthening internal control, and enhancing employee risk awareness. The results show that after applying the proposed management strategy, the enterprise performs well in cost control oriented enterprise financial risk management, with a cost accounting accuracy of 95% and an audit system completeness of 90%. It can also help the enterprise develop emergency plans and provide comprehensive risk management strategy coverage.

Keywords: cost control; corporate financial risks; risk management; effectiveness analysis.

DOI: 10.1504/IJEB.2024.141856

International Journal of Electronic Business, 2024 Vol.19 No.4, pp.380 - 392

Received: 25 Sep 2023
Accepted: 05 Dec 2023
Published online: 02 Oct 2024 *

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