| In market economy environment, the financial activities of enterprises will encounter all kinds of risks. Financial risks is an objective existence that can not be completely eliminated. It is necessary for enterprises to consider the risks in pursuitting of its objectives. Fully understanding and analyzing the financial risks helps to cut down its adverse effects to enterprises to the minimum. While joining the WTO, China's enterprises are facing more intense competition in the market. in the event of financial risks, the improper handling ways of risks will bring tremendous losses or even bankruptcy crisis. In order to control financial risks, enterprises must start from analyzing the cause of financial risks. Enterprises also must have corresponding means of controlling the lose to the smallest extent when financial risks occur.Based on theory of enterprise financial risks and considering enterprise-specific circumstances, this paper discusses about how enterprises can identify and control financial risks. The paper consists of six parts. The first part outlines the background and significance of the research; The second part introduces the concept of risks, the characteristics of risks, and relevant theory. The third part analyzes the causes of the financial risks; The fourth and fifth parts focus on enterprise's financial risks management from four aspects: financing activities, investment activities, accounts receivable management and income distribution. The sixth part is a case analysis about BJX company's financial risks management and the effect of financial risks management. |
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