Financial risk is a problem that every company will face. Excessive financial risk may lead to low operating efficiency of the company and even make the company go bankrupt. In recent years, the papermaking industry's market has been undergoing constant changes under the influence of national policies, and the papermaking industry has become increasingly competitive.In a complex market environment, the financial risks faced by companies have also increased.The analysis of the company's financial risk can enable the company to effectively avoid possible risks and develop operations under relatively small financial risks. Based on the five-year financial report of Yueyang Linzhi, this paper analyzed the cash flow and financial indicators to find out the risk of Yueyang Linzhi and proposed a solution.Through analysis, it is found that there are certain risks in the management of Yueyang Forest Paper in the external environment, the means of financing, accounts receivable and cost management.