1. Basic Means of Debt Finance Risk

1. Basic Means of Debt Finance Risk Control Debt Financing Risk Controlis the process of reducing, dispersing and transferring risk through various economic and technical means. Passive financing risk control is the ultimate goal of risk identification and assessment:(1) Fully understand truthful and timely information, establish a sense of riskWhen a company engages in commercial and production activities, changing the internal and external environment will inevitably cause the actual result to deviate from the expected outcome. The consequences of unconponsibility and loss to risk are unimaginable. Therefore, we need to establish a risk awareness, a scientific risk assessment, prevent the occurrence of the risk and address it effectively.(2) Analyse the macroeconomic environment and its changes, and establish an effective risk prevention mechanism.Companies should be market-based, establish a perfect risk prevention mechanism and financial information network, predict and prevent financial risks in a timely manner, formulate risk avoidance systems tailored to the real situation of companies, and distribute risk through a reasonable financing structure. .(3) Maintain a reasonable active-passive relationship and formulate a reasonable financial plan to determine a reasonable amount of liabilities.The company determines the amount of capital required in advance, balances the amount of financing and the amount of capital required, maintains a reasonable structural relationship between equity and borrowed capital, prevents excessive liabilities from increasing financial risk or fully using liabilities to trade, and reduced the level of capital gains shares. Dispose of short- and long-term funds as necessary to avoid excessive concentration of depreciation periods. Depending on the operational or construction needs of the projects, choose different time frames and debt financing methods to prevent risks.(4) Carefully study the supply and demand situation of the capital market, in accordance with the interest rate trend, to make the corresponding financing arrangements.In times of high interest rates, funding should be limited or limited to much-needed short-term funds; During the transition period from a high interest rate to a low interest rate, the floating interest rate should be adopted; In times of low interest rates, financing is more advantageous; During the transition from low to high interest rates, long-term funds should be actively raised and fixed rates should be used whenever possible. In addition, given the potential risk of exchange rate appreciation, we must begin by predicting exchange rate developments and formulating exchange rate risk management strategies. At the same time,(5) Accelerate the functioning of funds and do good supervisory workTo accelerate the development of corporate finances through debt management, it is necessary to strengthen the management of funds, speed up the operation of funds, reduce the amount of funds, shorten the credit cycle as much as possible. Production, improve the rate of production and sale, reduce receivables, so that companies can achieve debt prudence based on full consideration of the impact of various factors on liabilities. At the same time, do a good job in monitoring the use of domestic funds, once potential risks are found and risks should be stopped and avoided, to prevent the expansion of risk losses.