Research on the Comprehensive Governance Path of Financial Risk in Overseas Subsidiaries Based on the ESG Concept

Abstract

With the deepening integration of the ESG (Environmental, Social, and Governance) concept into global capital markets, the financial risk management of overseas subsidiaries has shifted from a single economic risk prevention model to a comprehensive governance paradigm. From the ESG perspective, this paper analyzes the risk transmission mechanisms of overseas subsidiaries in terms of environmental responsibility, social compliance, and governance structure, and proposes a tri-dimensional collaborative framework of “financial stability–compliance responsibility–social reputation.” Through comparative case studies of representative multinational enterprises, the study verifies the dynamic correlation between ESG performance and financial risk exposure, and further develops a financial risk early warning model constrained by ESG indicators. The findings provide a new pathway for Chinese enterprises engaging in overseas investment to achieve both sustainable development and stable financial management.