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Academic Journal of Business & Management, 2025, 7(12); doi: 10.25236/AJBM.2025.071207.

Research on Enterprise Financial Risk Management under the Financial Shared Services Model: A Case Study of H Group

Author(s)

Tong Jiang

Corresponding Author:
Tong Jiang
Affiliation(s)

Hainan Vocational University of Science and Technology, Haikou, Hainan, China

Abstract

Since the advancement of socialist modernization in China, the economy has developed rapidly, and many corporate groups have expanded by establishing multiple branch offices. However, they have also faced challenges such as ineffective management control and rising costs. Against this backdrop, the financial shared services model has emerged, leveraging the advantages of centralized management to effectively alleviate issues of functional redundancy and low efficiency. The rise of the financial shared services model can be likened to an industrial revolution in the field of finance, profoundly reshaping corporate financial management. In this context, exploring how to properly implement financial risk control under the new financial management model has become particularly urgent. This study takes H Group as the research subject. By analyzing its financial indicators and those of the industry from 2005 to 2022, the study identifies risks in the implementation of financial shared services, including cash management, accounts receivable management, and inventory management. Corresponding improvement suggestions are proposed, including optimizing cash management practices, adjusting accounts receivable collection rules, modifying capital structure, and refining production and sales processes. The aim is to assist H Group in enhancing financial risk management efficiency and further strengthening its capability to prevent and respond to financial risks.

Keywords

Financial Shared Services; Financial Risk; Risk Management

Cite This Paper

Tong Jiang. Research on Enterprise Financial Risk Management under the Financial Shared Services Model: A Case Study of H Group. Academic Journal of Business & Management (2025), Vol. 7, Issue 12: 52-57. https://doi.org/10.25236/AJBM.2025.071207.

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