我国钢铁企业多元化经营的财务风险控制问题分析-analysis of financial risk control problems in diversified management of iron and steel enterprises in china.docxVIP

II II Abstract Iron and steel industry is an important basic industry of our national economy, also it is an intensive industries of technology, capital, resources and energy. China is the worlds largest producer and consumer of steel, but with the financial crisis in 2008, the steel industry is facing overcapacity, rising resource prices, declining steel prices, demand slowdown , so that the sales profit rate has dropped even huge losses, then it becomes the least profitable industry in China. Facing to the reality of meager profit or damage, Chinas iron and steel enterprises were forced to vigorously develop non-steel industry, and revisit the diversification strategy. This situation also makes the theoretical circles and the business community reached a consensus on the diversification strategy development .The consensus marks a major transformation, which is Chinas iron and steel enterprises will take steel as the key link to the diversification strategy. Therefore, our iron and steel enterprises’ diversification wave will occur. However, due to the lag of relevant laws, regulations and other external factors, and internal risk management system construction still being in the exploration stage, Chinas iron and steel enterprises must be hidden financial risks in the development process of diversification. Thus, the closure of many domestic industries caused by the diversification strategy failed, fundamentally, is also due to the lack of diversification of financial risk control and prevention. Therefore, how to establish a full range of risk management and control mechanisms to prevent the financial crisis , has become a key issue in Chinas theoretical circles and enterprises. Therefore, this paper first describes the theory of financial risk diversification of the iron and steel enterprises, including financial risk management theory and the four related theories; secondly it elaborates on the status quo of diversification in Chinas iron and steel enterprises,