Independent Colleges' Early Warning Of Financial Risk In Our Country

Independent College is a new school system and education system emerged in the reform of higher education.It is conducive to expanding high quality teaching resources system, and also satisfy the increasingly strong demand for higher education.Independent Colleges is different from the ordinary Private Colleges, It is the training institutions of higher level personnel organized according to the new mode.After ten years of rapid development, independent college have made significant progress whether in the teaching management or in the internal management.however, compared with the national public institutions of higher learning, it is still in the early stage of development and there are Many immature in many aspects. Because of this, independent college face more internal or external financial risks than General Colleges.Financial risks, as the key components of risk,have important implications for the sustainable and Health development of independent College.This paper make systematic andcomprehensive analysis of the financial risks in independent collegeand make a comprehensive evaluation of financial risks through the establishment of a dedicated early warning model.It predicted risk and provide the basis for decision making to minimize the loss of risk.This paper firstly describes theories of the financial risk and financial risk early warning of Independent Colleges.It focus on the causes, the major types of financial risk in Independent Colleges and the function of the financial Risk Early Warning System. Then according to series ofprinciples,the paper established a Index system including eleven Financial Indicators of reflecting Solvency, Operating capacity and Development capacity of Independent Colleges.Finally, based on the scientific and rigorous manner, the paper construct a Comprehensive evaluation model of financial risk early warning by combined use of the comprehensive index model and analytic hierarchy method.It also makes analysis applied with the sample.This article also explains the basic framework of the independent College,Financial Risk Early Warning System,summarizes the basic principles to be followed when building the Financial Risk Index System and the financial risk early warning system of independent Colleges. Finally,the paper analyzes the inadequates of it.