Financial consulting

 
Financial consulting is a person with professional financial knowledge to provide customers with professional advice and services related to financial management, financial decision-making and other aspects. Its specific content mainly includes the following aspects:
 
 
 

1）Financial strategy consulting

 
 
We assist enterprises in formulating long-term and short-term financial strategic planning and clarifying their financial objectives at different stages of development. For example, for enterprises in the expansion period, we provide reasonable financing strategies to support their rapid development; for mature enterprises, we formulate sound fund management and profit distribution strategies to ensure their sustainable and stable development.
 
Conduct financial analysis and evaluation of major investment decisions of the enterprise, including the calculation of indicators such as ROI, NPV, IRR, etc., to provide the enterprise with a basis for decision-making. For example, when enterprises consider new project investment, analyze the feasibility and potential risks of the project to help enterprises make wise investment decisions.
 
 
 

2）Financial management consulting

 
 
Financial system design and optimization. According to the actual situation of the enterprise, design or improve the financial management system, including accounting system, financial budget system, fund management system, cost management system and so on, to ensure the standardization and standardization of enterprise financial management.
 
Financial risk management. Identify various financial risks faced by the enterprise, such as market risk, credit risk, liquidity risk, etc., and provide corresponding risk management strategies. For example, through the establishment of a risk early warning mechanism, potential financial risks are identified and responded to in a timely manner.
 
Financial Analysis and Reporting. We conduct in-depth analysis of the financial situation of enterprises and provide financial statement analysis, ratio analysis, trend analysis and other reports to help the management of enterprises understand the operating results and financial situation of enterprises and provide support for decision-making. Meanwhile, customized financial analysis reports can also be provided according to the needs of enterprises.
 
 
 
3）Tax Consulting
 
 
 
Tax planning. According to the national tax policy and the actual situation of the enterprise, formulate a reasonable tax planning program for the enterprise to reduce the tax burden of the enterprise. For example, through the reasonable use of tax incentives, choose the appropriate tax payment method, etc., to save tax costs for enterprises.
 
Tax compliance counseling. Help enterprises understand and comply with national tax laws and regulations to ensure that their tax declarations and tax payment behaviors are legal and compliant. Provide tax risk assessment and prevention advice to avoid enterprises facing legal risks due to tax issues.
 
Tax Dispute Resolution. Provide professional consulting and solutions to help enterprises safeguard their legitimate rights and interests in case of tax disputes with tax authorities.
 
 
 
4）Financing Consultation
 
 
 
Financing program design. According to the enterprise’s capital demand and development planning, design suitable financing programs for the enterprise, including bank loans, bond issuance, equity financing and so on. We help enterprises choose the optimal financing methods and channels to reduce financing costs.
 
Financing Negotiation Support. Provide professional financial advice and negotiation strategies when enterprises are engaged in financing negotiations, assist enterprises in effective communication and negotiation with investors or financial institutions, and strive for favorable financing conditions.
 
Post-financing management. After obtaining financing, we provide post-financing management consulting for enterprises, including supervision of fund use, monitoring of financial indicators, investor relationship management, etc., to ensure that the enterprises use the financing funds in a reasonable manner and realize the financing objectives.
 
 
 
5）M&A Reorganization Consulting
 
 
 
M&A strategic planning. Formulate M&A strategy for the enterprise and define M&A objectives and directions. Analyze market trends and competitors’ situation to find suitable M&A targets.
 
M&A due diligence. Conduct comprehensive financial, legal and business due diligence on M&A targets to assess the risks and value of M&A. Provide due diligence reports to provide basis for corporate decision-making.
 
M&A transaction structure design. Design a reasonable M&A transaction structure, including payment methods, equity ratio, financing arrangements, etc. Ensure the legality and reasonableness of the transaction and reduce M&A risks.
 
Post-merger integration. Assisting companies in post-merger financial integration, business integration and cultural integration to realize M&A synergies and enhance corporate value.
 
 
 
6）Other financial consulting services
 
 
 
Asset evaluation. Appraise the assets of the enterprise, including fixed assets, intangible assets, equity, etc., and provide value reference for the enterprise’s asset transactions, mortgage financing, etc.
 
Financial management training. Provide financial management training services for enterprises to improve the professional quality and management level of their financial personnel. The training content may include financial system, financial analysis, tax planning, financing management and other aspects.
 
Financial informatization consulting. Provide financial informatization solutions for enterprises, help enterprises establish and improve financial information system, improve financial management efficiency and informatization level.

compliance management

 
Compliance management is a series of management activities taken by the enterprise to realize operation in accordance with the law and prevent and control compliance risks. Its specific content mainly includes the following aspects:
 
 
 
1）Compliance system construction
 
 
 
 
Formulate compliance policy. Define the enterprise’s compliance philosophy, objectives and principles, and provide overall guidance for the enterprise’s compliance management. For example, it stipulates that enterprises must comply with national laws and regulations, industry norms and internal rules and regulations in their business activities.
 
Establish a compliance management system. It covers various business areas and management links, including but not limited to systems for anti-corruption, anti-fraud, anti-monopoly, environmental protection, labor and employment. For example, the Anti-Commercial Bribery Management System, Anti-Monopoly Compliance Guidelines and other specific systems are formulated to regulate the behavior of the enterprise and its employees.
 
Regularly review and update the compliance system. With changes in laws and regulations and the business environment of the enterprise, the compliance system is revised and improved in a timely manner to ensure its effectiveness and applicability.
 
 
 
2）Compliance risk identification and assessment
 
 
 
Comprehensively identify compliance risks. Identify possible compliance risk points by analyzing an enterprise’s business processes, operating activities and external environment. For example, in the case of fierce market competition, enterprises may face antitrust risks; in cross-border operations, they may face compliance risks arising from differences in laws and regulations of different countries.
 
Evaluate the degree of impact and probability of occurrence of compliance risks. Quantitatively analyze the identified compliance risks to determine the degree of impact and probability of occurrence on the enterprise so as to take corresponding risk control measures. For example, for high-impact and high-probability compliance risks, the enterprise should prioritize strict control measures; for low-impact and low-probability compliance risks, it can adopt a relatively lax management approach.
 
Establish a compliance risk database. The identified and assessed compliance risks are categorized and organized, and a compliance risk database is established to provide data support for the enterprise’s compliance management.
 
 
 
 
3）Compliance training and communication
 
 
Conduct compliance training. For employees at different levels and in different positions, develop targeted compliance training programs to improve employees’ compliance awareness and compliance capabilities. The content of the training may include interpretation of laws and regulations, corporate compliance system, and compliance case analysis. For example, provide induction compliance training for new employees and advanced compliance training for management.
 
Strengthen compliance communication. Establish an open compliance communication channel to convey corporate compliance requirements and the latest changes in laws and regulations to employees in a timely manner. At the same time, employees are encouraged to actively feedback compliance issues and suggestions to form a favorable compliance culture. For example, a compliance reporting hotline and email address are established to protect the legitimate rights and interests of whistleblowers.
 
 
 
 
 4）Compliance review and supervision
 
 
 
 
Conduct compliance review. Conduct compliance reviews of the enterprise’s major decisions, important contracts, business activities, etc., to ensure that they comply with laws and regulations and the requirements of the enterprise’s internal rules and regulations. For example, before signing a major contract, the terms of the contract are reviewed for compliance to avoid potential legal risks.
 
Implementation of compliance supervision. Establish a sound compliance supervision mechanism to regularly inspect and assess the compliance management of the enterprise. Through internal audits and special inspections, problems and deficiencies in compliance management are identified and promptly supervised and rectified. For example, special inspections are conducted in key areas such as financial income and expenditure, procurement and bidding of enterprises to prevent compliance risks.
 
Dealing with irregularities. Serious treatment is given to the violations found, including warnings, fines, demotions, dismissals and other punishments, while the relevant responsible persons are held accountable. For example, employees who violate anti-corruption regulations are seriously dealt with in accordance with the law to serve as a warning.
 
 
 
 
5）Compliance culture construction
 
 
 
Establish compliance values. Make compliance one of the core values of the enterprise and integrate it into the enterprise’s business philosophy and corporate culture. Through publicity and education, role models and other means, compliance values are deeply rooted in people’s hearts. For example, carry out compliance culture theme activities and select compliance advanced individuals and collectives.
 
Leaders take the lead in practicing compliance. Senior corporate leaders should set an example by taking the lead in complying with compliance requirements and setting an example for employees. At the same time, compliance management is incorporated into the enterprise’s performance appraisal system to incentivize employees to actively practice compliance. For example, the content of compliance management should be added to the duty report of leading cadres.
 
Create an atmosphere of compliance. Through various publicity channels within the enterprise, such as bulletin boards, internal publications, network platforms, etc., widely publicize compliance knowledge and compliance culture to create a strong compliance atmosphere. For example, a compliance column is opened in the internal publication of the enterprise to share compliance experience and cases.
 
 
 
 

risk management

 
Risk management refers to a series of activities of identifying, assessing, responding to and monitoring the various risks that an enterprise may face in the course of operation. Its specific content mainly includes the following aspects:
 
 
 
 
  • Risk identification
 
  • (1) Define the scope of risk
 
Identify all potential risk areas faced by the enterprise, including but not limited to market risk, credit risk, operational risk, strategic risk, legal risk, compliance risk, environmental risk and so on. For example, for financial enterprises, market fluctuations may bring about market risks, and customer defaults may lead to credit risks; for manufacturing enterprises, raw material price fluctuations and supply chain disruptions belong to market risks, and safety accidents in the production process belong to operational risks.
 
Consider the internal and external environmental factors of the enterprise, such as the macroeconomic situation, the competitive situation of the industry, the enterprise’s own business strategy, organizational structure, and personnel quality. For example, an economic downturn may increase an enterprise’s market risk and credit risk; increased competition in the industry may lead to an increase in the enterprise’s strategic risk and market risk.
 
  • (2) Adopt multiple identification methods
 
Brainstorming method: Organize professionals from various departments within the enterprise to discuss, brainstorm and identify risks as comprehensively as possible. For example, a risk identification seminar is held to allow everyone to speak freely and put forward the various risks they may face.
 
Questionnaire survey method: Design questionnaires to survey employees, customers, suppliers and other relevant parties to understand their views and suggestions on enterprise risks. For example, an online questionnaire is used to collect employees’ awareness of potential risks at work.
 
Process Analysis Method: Sort out and analyze the business processes of the enterprise to find out the possible risks in each link. For example, the procurement process of the enterprise is analyzed to find out that there may be risks such as improper selection of suppliers, high procurement prices, and unclear contract terms.
 
Case analysis method: Study the risk events that happened in the same industry or the enterprise itself in the past, learn lessons from them and identify similar risks. For example, analyze crisis events caused by product quality problems in other enterprises to identify possible risks in product quality in our enterprise.
 
 
 
 
  • Risk Assessment

 

  • (1) Determination of risk assessment criteria
 
Likelihood of risk occurrence: usually divided into three levels: high, medium and low, and assessed based on factors such as historical data, industry experience and expert judgment. For example, for market risk, the likelihood of risk occurrence can be assessed by analyzing factors such as market trends and competitor situations.
 
Degree of risk impact: This includes the impact on the enterprise’s financial position, operating results and reputation, and is also categorized into three grades: high, medium and low. For example, credit risk may lead to uncollectible accounts receivable of an enterprise, which will have a significant impact on the financial position of the enterprise.
 
  • (2) Quantitative risk analysis
 
Quantitative analysis methods, such as value at risk (VaR), sensitivity analysis, Monte Carlo simulation, etc., are used to quantitatively assess risks. For example, through value-at-risk analysis, it is possible to calculate the maximum loss that an enterprise may face in a specific time period under a certain confidence level.
 
Combine qualitative analysis methods, such as expert assessment and scenario analysis, to provide a comprehensive assessment of risk. For example, through scenario analysis, different risk scenarios are simulated to assess an enterprise’s ability to cope under various circumstances.
 
 
 
 
  • Risk Response

 

  • (1) Risk avoidance
 
Abandonment of activities or operations that may lead to risks in order to avoid them. For example, if an investment project is too risky, a company may choose to abandon the project to avoid potential losses.
 
Changing business strategies or business models to reduce risk. For example, an enterprise can diversify its operations to spread market risks; and reduce procurement risks by optimizing supply chain management.
 
  • (2) Risk Reduction
 
Take measures to reduce the likelihood of risk occurrence or the degree of impact. For example, for operational risk, it can strengthen staff training to improve the degree of operational standardization; for credit risk, it can establish a strict customer credit assessment system to reduce the risk of customer default.
 
Purchase risk transfer tools such as insurance to transfer part of the risk to the insurance company. For example, enterprises can purchase property insurance, liability insurance, etc., in order to reduce losses caused by unexpected events.
 
  • (3) Risk taking
 
For some risks that cannot be avoided, reduced or transferred, enterprises can choose to bear them. For example, for the risks brought by market price fluctuations, enterprises can choose not to take special countermeasures if they think they have enough ability to bear such risks.
 
While bearing risks, enterprises should formulate contingency plans so that they can respond promptly and effectively when risks occur. For example, in the case of possible natural disasters, enterprises should formulate disaster contingency plans to ensure the safety of personnel and the reduction of property losses in the event of a disaster.
 
 
 
 
  • Risk monitoring
 
  • (1) Establishment of a risk monitoring indicator system
 
Based on the results of risk assessment, key risk indicators, such as market volatility, credit default rate, operational error rate, etc., are identified for real-time risk monitoring. For example, financial firms can monitor market volatility indicators to keep abreast of changes in market risk.
 
Risk monitoring indicators are regularly analyzed and evaluated to discover trends in risk changes and adjust risk management strategies in a timely manner. For example, enterprises analyze key risk indicators on a monthly basis and adjust risk response measures based on the analysis results.
 
  • (2) Implementation of risk reporting system
 
Regularly report the risk status, including the situation of risk identification, assessment, response and monitoring, to the enterprise management and relevant departments. For example, a risk report is prepared every month to report the enterprise’s risk status and progress of risk management work to the management.
 
For major risk events, they should be reported in a timely manner and contingency plans should be activated. For example, when a major credit default event occurs, it should be reported to management immediately and appropriate risk response measures should be taken.
 
  • (3) Continuous improvement of the risk management system
 
Continuous improvement of the risk management system is carried out based on the results of risk monitoring and assessment, as well as changes in the internal and external environment of the enterprise. For example, risk management policies, processes and methods are regularly reviewed and revised to improve the effectiveness of risk management.
 
Strengthen the construction of risk management culture and improve the risk awareness and risk management ability of employees. For example, through training and publicity, employees can understand the importance of risk management and master risk management methods and techniques.