Research Of Financial Risk Control On ABC Company

Since its establishment at the beginning of 1990, Chinese stock market has gone though much fluctuation. Nowadays the majority of the first 20 listed companies in the stock market no longer exist. Tracing to its causation, there are various financial risk control problems in these companies. So it improves that researching and controlling of the financial risk of a company has great significance to against financial crisis.This article takes ABC Company as the research example; at first this article appraises ABC's financial risk from the point of the financial index, concluding that ABC has a high financial risk. Secondly, it makes research on the control of financial risk to minimizing financial risk.Main conclusion: (1) In the administration structure , the writer suggests setting up audit committee to strength internal audit system; meanwhile emphasize the separation of the character of president and general manager; setting up moral file and the management level is required to submit a comprehensive annual report about the financial risk to the board (2) investment and fund raising risk control through the internal control to improve fund raising and investment, the writer suggests that the great financial decision should be made on the base of responsibility tracing mechanism to minimizing financial risk (3) fund application control setting up fund network control system to realize the whole process control in ABC including fund raising, investment, distribution until the section of fund benefit; Furthermore, make analysis on the account receivable and stock risk in the flow assets (4) comprehensive financial risk control strategy setting up a financial warning system for ABC, which make periodical analysis on to realize real time pre-alert; meanwhile, require ABC to optimizing encouraging and bond mechanism such as abstention to deduce the financial risk.