Sheng Yingnan, Li Shuang, Khomenko T.V. Research on financial risk evaluation of new energy automobile manufacturing enterprises

Abstract

This study delves into the financial risk evaluation of new energy car manufacturing enterprises, focusing on the Geely Company. In an era marked by rapid changes, uncertainty, and fierce competition, especially in the automotive sector, the importance of effective organizational management and risk analysis in management decisions has become paramount. These decisions significantly influence economic outcomes and the stability of firms. Specifically, the paper addresses the crucial role of financial risk management within modern companies in this sector.

The research outlines the theoretical aspects of financial risk management, emphasizing the need for a scientific approach in decision-making. It acknowledges the challenges faced by firms, like Geely, in innovating within a sometimes hostile environment. These challenges include high risks, substantial financial investments, and uncertain returns on innovation. The study then explores Geely’s risk management system, evaluating its effectiveness and proposing enhancements. Through an in-depth analysis of Geely’s financial risk management strategies, the paper aims to develop an internal mechanism for managing financial risks and suggests measures to enhance their effectiveness. This research contributes to the understanding of the relationship between innovation, entrepreneurship, and financial risk in the context of the automotive industry, particularly for enterprises engaged in new energy vehicle production.