Problems And Strategies Of Financial Risk Management In Higher Institutions

With the further reformation of higher education in China , colleges and universities has got more and more managing independently right .At the first time ,colleges and universities have to response the corresponding financial risk accompany with these right. In market competition, once financial status worsens, colleges and universities must be confronted with the survival crisis. Evading, keeping watch and managing risk are important tasks of colleges and universities financial management. The main purpose of the article is that making risk analyzed and bringing forward effective methods for financial management.This article generally analyzed the financial environment of colleges. Based on the pioneers'research progress, this paper proposes some ideas on avoiding financial risks. The best way to lower the level of financial risks is the precaution on them, e.g.: perfect internal control system. Good internal control system can prevent some financial risks initially, and play an important role in financial risk management.The colleges'financial-risk early warning system does forecast risk and control risk. Through the analysis of much information, we are looking for the key variables which could cause the financial risks, expecting this can give a precaution on the risks, and then the colleges'financial management system can apply precaution procedure to prevent the potential risks. Additionally, this system can timely search the factors that may deteriorate the environment of finance, helping the managers deal with the situations.On the fundamental view, the core problem is about money, so far many colleges are enlarging their scales faster and faster, lack of money and inefficient applying skills restrict the further development. This paper raises the point that colleges should attract social and individual funds to support the development, and also encourage the corporation between banks and colleges, meanwhile improve the using efficiency of the money. Furthermore, this paper also gives some suggestions on dealing with colleges'financial risks, e.g.: improving the budget system etc.