Financial Risk Assessment of an Ocean Shipping Company Based on the AHP

Kong, M.-Q.; Tang, J.-X., and Yu, S.-M., 2020. Financial risk assessment of an ocean shipping company based on the AHP. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 481–485. Coconut Creek (Florida), ISSN 0749-0208.The financial assessment of ocean shipping companies plays a vital role in the development of the company. On the basis of the analytic hierarchy process (AHP), this paper aims to evaluate the financial risks of ocean shipping companies. To this end, it first analyses the financial risks qualitatively and quantitatively, and further decomposes and judges the risk issues. Then, taking company A as an example, the risk assessment method was demonstrated. Finally, it conducts a comprehensive assessment of financial risks. The research showed that the improved AHP proposed in this paper can comprehensively evaluate financial risks and also provide sufficient time for companies to avoid risks and reduce risk losses; shipping company A was evaluated using the AHP to find that its financial situation is not optimistic; it is at the level of medium risk, so proactive measures should be taken to solve existing problems and improve the company's ability to deal with financial risks. The research findings provide a new method for financial risk assessment of ocean shipping companies.