Study On Financial Risk Management Of Colleges And Universities

The late nineties of the 20th century, the Central Committee of the Party and the State Council made the important decision to accelerate the development of higher education, and increase massively the enrollment of colleges and universities, to make higher education into the popular stage of development. In this process, reform and development of higher education achieve a historic breakthrough. The scale of colleges expands rapidly, and the colleges'conditions continue to improve, and managerial benefit has been further improved. However, with the rapid development of higher education, universities and colleges have a shortage of money in running a school, and some schools have poor awareness of risks, and internal control is not perfect. All these issues have been prominent. With the establishment of the legal status of colleges and universities and deepening reform of higher education, colleges and universities have certain autonomy in the adjustment of school structure, the scale of development, financing, use of funds, etc. This autonomy also makes college financial management from the risk less management under planned economy system to the risk management under the market economy conditions. Therefore, universities should earnestly strengthen the awareness of risk prevention, build a risk early warning system, perfect the internal control system, improve the financial situation of the school, and prevent financial risks effectively. It is of great significance to promote sustainable and healthy development of universities, and improve the quality of higher education.This paper is divided into the following six parts: Part I is introduction. It mainly introduces the topics of the background and significance and research status, and put forward innovations of this paper. The second part is the definition of related concepts and theoretical basis. It define financial risk of college and university and the related concepts, explain the financial risk management theory and COSO internal control theory, and lay a foundation for further research on financial risk management. The third part is the status of financial risk management of college and university. It analyzes the status of higher education and points out the characteristics of college financial risk. The fourth part is the analysis of the causes of financial risk. It studied the causes of college financial risk from analyzing the status quo of college finance risk management. It studies the main factors of financial risk from the university own and external factors. The fifth part is Financial Risk Prevention and countermeasures. It is proposed to establish warning index system for the causes of the financial risk, perfect internal control of colleges drawing on theories of COSO internal control, enhance self-financing capacity,increase government investment, and strictly control loans from banks, so as to effectively prevent the college financial risk. The sixth part is conclusions. It describes the research conclusion and deficiencies.The paper's purpose is "preventing college financial risk". It studies the causes of financial risk from the university'and external factors on basis of analyzing the status of financial risk management of colleges. At last, in view of the causes of the financial risk of college, the preventive countermeasures are put forward from the three aspects of bank universities, and government.