Research On The Construction And Application Of Z Financial Risk Early Warning System

As a non-renewable resource,coal has a great importance of economic development for China,a country that rich in coal but poor in oil,and coal enterprises play a pivotal role in era of rapid development.But today,the golden decade of the coal industry has become a thing of the past,and its severe period has quietly arrived in recent years.The urgent demand of the society for an excellent ecological environment and the continuous emergence of new energy advantages have made the competition for coal resources increasingly fierce.Every decision made by coal enterprises has become crucial.There exist many risks and challenges during the coal enterprises evolving period,of which the financial risk is inevitable in all enterprise life cycles.Therefore,how to deal with the financial risk has become a problem that most enterprises need to seriously consider,otherwise it is likely to encounter bankruptcy crisis.However,the degree of financial risk is not unchangeable.Instead,enterprises can identify potential risks through financial risk warnings and,to some extent,take corresponding measures in a timely manner to remove obstacles on the development path.This paper takes a large coal enterprise,company Z,as the research object,based on the theory of life cycle theory,enterprise crisis management theory and enterprise adversity theory,through the literature research method,case analysis method and the combination of qualitative and quantitative methods,to explore how to establish the financial risk early warning system of coal enterprises,finding out the financial risk according to the operating conditions and financial status of company Z,and then establishing a financial risk early warning system that meets the characteristics of coal enterprises’ own operations,in order to help enterprises find the potential reasons for the financial risk.What is more,it can provide a reference for others.The study found that company Z has many risks,such as policy change,economic risk,internal function management risk,debt repayment risk,receivable return and profitability decline risk.In view of the above risks,this paper proposes to establish a financial risk early warning system to help enterprises carry out risk warning.Through the design and application of the financial risk early warning system,it proves that the designed system achieves the expected results,which helps the enterprises to make strategic adjustments,strengthen internal functional management,optimize capital structure,and carry out technological innovation.In order to ensure the operation of the system,it is proposed to enhance the financial personnel’s awareness of financial risk warning,establish a separate financial risk early warning department,and improve the financial risk early warning system operation mechanism and the financial risk early warning crisis treatment plans and safeguards.