Enterprise Financial Risk Analysis of Causes and Countermeasures_521.doc

enterprise financial risk analysis of causes and countermeasuresabstract: in a market economy, enterprises as the main body of market competition, the various risks faced by the growing need to strengthen risk management has become a modern enterprise management a very important content. financial risk is the financial results and financial risks, business risk is an important aspect. enterprises in the pursuit of profit at the same time inevitably bear the financial risk. to establish an effective corporate financial risk management is conducive to gaining access to risk premium to avoid the financial crisis will help chinese enterprises enter the international market and participate in international competition. keywords: causes of and countermeasures enterprise financial risk analysis of an overview of the theory of financial risk financial risk refers to the enterprises financial results and financial condition of the risk, there is a narrow and broad distinction. narrow financial risk is the debt caused by the enterprises, specifically refers to the borrowing of funds business due to the increase in the possibility of insolvency and corporate profits (equity) of variability, it refers to the risk of corporate cash and financing risk, it is and business risk, capital market risk, together constitute the main body of the risks faced by the enterprises. general financial risk is the enterprises financial system, exists objectively, because of a variety of difficult or unpredictable, the control of the role, allows businesses to achieve financial gains and financial returns expected departure from the place, thus the chance of loss suffered or likely. 2 enterprise financial risk analysis 2.1 external causes 2.1.1 the complex financial environment. enterprise managementfinancial management environment, including national macroeconomic, legal and socio-cultural environment and other factors. these factors exist outside the firm is the enterprises beyond the control of the financial management activities of enterprises have a significant impact. when the enterprise increases exposure to external risks, business risks and financial risks are also increasing trend. thus, managers of enterprises should be a comprehensive analysis of the risk of a variety of causes, enhance the risks and prevention of risks, improve the market competitiveness of enterprises, which stand undefeated. 2.1.2 of natural causes and other causes. natural causes is another cause of financial risk business reasons. is uncertain due to natural causes, are reflected one of the basic characteristics of financial risk. refers to the national policy for other reasons such as unforeseen factors. complex is the enterprise of national policy produces the external causes of the financial risk, financial risk related to the stability of the relevant policies and integrity. 2.2 the internal factors 2.2.1 the financial activities of their own factors. irrational structure of enterprise funds, asset liquidity is weak, excessively high proportion of debt financing is the financial risk caused by one of the reasons. due to funding decision-making errors and other reasons, the capital structure of chinese enterprises unreasonable widespread. after the debt financing enterprises must ensure that sufficient cash to repay maturing debt and interest, if an enterprises cash flow like the ministry of poor liquidity is not strong but can not guarantee that enough cash, which will lead to the enterprise financial risk from the potential become a reality, so that enterprises find themselves in financial crisis. 2.2.2 managers know lag. at present, chinese enterprises widespread experience in financial decision-making decision-making and subjective decision-making phenomena, the resulting decision-making mistakes often occur, resulting in financial risk. 2.2.3 chaotic internal relations. financial relations within the enterprise confusion is common problem of chinas enterprises, corporate internal financial relationships confusion is chinas enterprises have financial risk is another important reason. various departments within the enterprise and between enterprises and between enterprises superiors, in the fund management and the use of powers and responsibilities in areas such as the distribution of benefits is unknown, the phenomenon of chaotic management, resulting in inefficient use of funds, a serious drain on resources, capital security, integrity of the can not be guaranteed. 3 enterprise financial risks and preventive measures in response to ideas 3.1 enterprise financial risk response ideas 3.1.1 the use of fund-raising activities in response to financial risk the blood of the enterprise funds are continuing to engage a precondition for production and business activities, funding is the starting point for corporate finance, investment, with capital base. in a market economy conditions, the fund-raising activities as a starting point for enterprise production and business activities, management misconduct will raise efficiency in the use of funds of great uncertainty, the resulting risk financing. the formation of the financing risk factors, enterprises can be controlled from the following aspects: the development of financing risk prediction system is a prerequisite to prevent the risk of financing; reasonable arrangements for corporate income and expenditure of funds not properly organized to avoid the risk brought about by the temporary; reduce the funding costs and increase financing for risk prevention capacity; optimize the capital structure; strengthening enterprise management, improve efficiency to increase profitability; scientific decision-making optimization of financing programs; debt restructuring of enterprises; currency financing for a reasonable choice. reposted elsewhere in the paper for free download http:/ 3.1.2 the use of investment activities in response to the financial risks of corporate fund-raising goal is for better to invest through the investment companies to create more profits. similarly, enterprises both domestic and foreign investments there are risks, these risks also requires enterprises to adopt measures to identify and preparedness. when the company decided to invest in activities, we must first invest in the future earnings of the company to conduct a reasonable forecast to strengthen the investment program of the feasibility study. investment enterprises in the project should be a reasonable investment portfolio to maximize the spread investment risks. investment activities of enterprises the main industry, including business investment and other investment, corporate investment risk are mainly based on the project to determine the rate of return, if the project profitability is greater than liabilities, interest rate, with less risk. on the contrary, the investment risks. for investment risk control measures can be used the following methods: to conduct market research, collecting a wealth of market information. proposed project feasibility study report for investment decisions. the implementation process of the dynamic monitoring to prevent an overall and comprehensive preventive portfolio risk diversification to implement an investment guarantee 3.1.3 use of funds for venture capital recycling activities in response to the financial recovery of enterprises in the earnings risk is that a good case, because the sales realization of the principles of the different resulting financial difficulties. in the accrual principle, a good operating income does not mean that the closure of sales outstanding was the realization of profits and sales. credit instruments as a prosperous market boosters one hand, he promoted the conduct of their business, but it also increased the risk of the recovery of funds of enterprises, leading to a large number of accounts receivable of the long-term unpaid debts, the possibility of bad debt losses this increased financial risk came into being. enterprises should be based on the precautionary principle, for possible bad debt losses and bad debts in its preparation before the occurrence of extract to reduce the current inflated profits and guard against the risk of capital recovery. for the recycling activities in the capital generated in the process, it may take the following measures: good credit customers credit investigation the development of rational credit policy, the establishment of credit and approval system to strengthen the establishment of accounts receivable management appraisal system, implement the responsibility system to strengthen marketing, personnel training and improve quality. 3.1.4 the use of income distribution activities in response to financial risk in income distribution is the enterprise, a financial cycle of the last link. distribution of income, including retained earnings and dividends in two ways. distribution of income risk is an enterprise approach in the allocation of earnings, time and amount of the different trade-offs on the value of the business coming to the uncertainty. to do this companies must make reasonable income distribution policy, enterprises should actively take measures to convey a positive benefit to the investors live in interest rates, create investor confidence, facilitate the enhancement of corporate value. income distribution activities, the risk can be used the following methods: determine the dividend policy to reduce the risk of profit distribution; to face the impact of policy factors, the distribution of profits, control the allocation of the risk of corporate profits. 3.2 the financial risk prevention measures 3.2.1 strengthen financial supervision, improve the internal control system construction enterprise financial risk management, the complexity and diversity of calling for corporations to establish and improve the corresponding organizations in a timely and effective implementation of risk management, only the enterprises financial risk of the operation of the achievement of organizational in order to achieve corporate financial risk management receive adequate attention and the real scale of operation. enterprises can establish a separate financial risk management, and personnel with the appropriate financial risk forecasting, analysis, monitoring, in order to detect and defuse the risks, establish and improve risk-control mechanism. 3.2.2 strengthen fund management, effectively preventing financial risks. enterprises should develop monetary fund management method, strengthen financial revenue and expenditure approval system and strengthen the internal audit system, the implementation of monetary funds business of personal responsibility, according to department and job responsibilities of authority, to ensure that the business is incompatible with handling monetary capital positions separate from each other , constraints and oversight. 3.2.3 strengthen the management of external security, reduce liability risks of providin