The Research On Management Of Public University's Financial Risk

With the tremendous development of higher education, there have been some new changes in the universities' financial management . Signs of financial risk appears too. Higher education's public welfare undertakings character and universities' non-profit character determine that the government is the ultimate accountability. Risk will passed to the government. The government is in a weak position in the game between the government, universities, and banks, eventually the university's financial risk will be transferred to the state's financial risks. Therefore, how to control financial risk of universities have became the academic problem and practical problem in university's financial management and public financial.Under the guidance of the theory in the financial risk management , this article analysis financial risk between university and university's and enterprises, and the causes of the financial risk from two aspect ,which one is government and another is university. In conjunction with the reality of the universities and universities this article set a financial risk assessment indicators system , in which two qualitative indicator were added. And then , this article analysis the university's financial risk with AHP way, and explained it with an examples. Finally, from the perspective of both the government and universities financial risk control measures and proposals were presented. From the perspective of universities, universities submit financial risk control is included funding risks' controlling, investment risks' controlling, and operational risks' controlling. From the perspective of nation, the government should donors to explore how to improve the integrity of higher education institutions and universities invest financial oversight mechanisms.