Research On Financial Risk And Its Hindering Of Group Companies

Due to the complication of the object world and the limitation of the mankind cognition, risks universally exist in the people's everyday lives and works. If an enterprise turns a blind eye to financial operation quality and lets it alone, it is easy to produce financial risk, which will induce the enterprise's closedown and bankruptcy after it accumulates enough. Group companies in the western countries have strong consciousness of risk management, and implement real-time monitor and hindering financial risks in the operation, hence fully ensure their sound moderate development and perennial thriving and prosperousness. At present, the academe in our country studies it little, and many enterprise groups still haven't no consciousness of hindering risks. It is very significative to study financial risks and its obstructions.In virtue of the theories of corporate finance, cybernetics, operational research and statistics, this paper primarily analyses financial risks of group companies and establishes the basic frame of its financial risk management Firstly, the paper defines the connotation of financial risk, subsequently it analyses the nexus of centralization, decentralization and financial risks, plots " pedigree chart of financial risk in enterprise groups", and puts forward its management process and obstruct measures. Secondly, in term of the nature of financial activities, this paper also discusses separately the three origins of financial risks ?-financing risk, investment risk and accounts receivable risk .In discussing financing risk and investment risk, the paper concretely analyses the origins, identification and controlling measures, and attaches concrete cases analysis, too. In discussing accounts receivable risk, the paper advances the mode "the whole process of credit management" for accountsreceivable, which provides ideas to settle the problem of accounts receivable for company. Then the paper discusses financial risk management of transnational operations. At last, the paper studies hindering methods for financial risks of group companies. The paper firstly discusses the regulation hindering method of financial risk. Just as the author thinks, the most resultful route of hindering risk is to control the emergence of risk from risk-emergence mechanism, so it dissertates how to synthetically reduce the whole level of financial risks from company readjustment structure and incentive and restricted mechanism. At the end of the paper, it introduces the methods of monitoring and prognosticating financial risks, establishes the model to monitor and prognosticate it, and puts forward "the financial healthy index of group companies" to assess the quality of group companies' financial operation and judge the level of financial risks. The author makes demonstration analysis to a domestic group company, which is an important measure of financial risk management of group companies.