Chinese Public High-level Education Institutions Research On Financing Risk Control Mechanism

In recent years, education in China is developing at a dramatic speed. In higher- leveleducation, we have brought in market mechanism in a wider range, promote fees collectionsystem in a more extensive way, positively expand the capital- raising channels, establishingthe school- running system mainly relying on national education funds and partly on multiplemarket channels. At the same time, financial managements in higher- level schools also areconfronted with more complicated situation with the changes in education environment andthus it has shifted from riskless management to risky management. Therefore, it is imperativeto do a research on possible financial risks and control mechanism in the development ofChina's public general higher- learning schools.This article involves the basic theory of financial risk management and behavioralfinance, and according to requirement in the integral development and concrete situation ofdaily financial management for our public general higher- learning schools. It sums up thevarious financial risks for and analyzes the special traits and causes of higher- learninginstitutes. Pinpointing at the deficiency of current control system in higher- learning institutes,according to actual demand of financial risk control, it applies the major factors to someconcrete measures, such as financial risk warning system, financial debt risk control system,financial investment control system etc. to realize the goal of controlling target risk.Meanwhile, it summarizes the advice on establishing and improving laws and regulations offinancial management for our public general higher- learning schools and gives real examplesof the affiliated schools of Education Department.