Independent Colleges Warning System For Financial Risk In Our Country

Independent Institute is a major breakthrough in the innovative and reforming process of University mechanism, on the one hand it can expand high-quality education resources, on the other hand also meet the strong demand for higher education of the people. Independent Colleges is different from the traditional second system which is a school before , also from private schools, but higher education at undergraduate level under the new mechanism, the new model organized institutions . After ten years of development, independent college, whether in management or internal management of teaching building has made considerable progress, but compared with public institutions, its still in the stage of rapid development, all parties have not yet matured. Because of this, independent colleges face many internal and external risks, financial risks, as one of the important part of the sustainable development of the independent college seriously affected. This comprehensive, systematic and effective analysis of the independent Institute about financial risk will be elaborated, it will through the establishment of a special index system and early warning mechanisms, understand the potential financial risks of the operation.This paper describes the meaning of financial risks first, based on which, combination of the characteristics of independent colleges, analyze internal and external risk source of independent institute, followed by layers of advance, primarily aimed to establish theory to analyze the financial warning system of independent Institute. The article first selects 15 financial indicators, divided into solvency, operational capabilities, profitability and development potential of four financial indicators evaluation system. Because of the financial statements of Independent Colleges is not open to the public, the system can not obtain financial data, and therefore demonstrate similarities and differences between public institutions of higher learning and the Independent Institute, based on data on public colleges to adjust, 16 sets of data are applicable. In the data analysis we will use the factor analysis method, and with the help of SPSS statistical software, firstly standardize indicators of the original data, eliminating the infection of dimensional and other factors. Secondly, use of correlation analysis for the four the common factors which are unrelated, and contains nearly 87% of the original target information, namely the establishment of four common factor scores and the composite score formula, and finally, according to the formula and standardized data, we can got the score which the 16 sets of data represent and classed status of the independent colleges by the score, in accordance with the size of the risk they are divided into no warning, warning light, medium alert, heavy police, giant police.This article also describes the several principles when independent college selects financial risk warning indicators which are must be complied with, and analyzed several issues of the early warning mechanism in the need to pay attention to. Finally, this paper described the shortcomings in the process of research and analysis.