A Study On Reason Analysis And Defense Measures Of Enterprise Financial Risks

Risk is a basic concept and also an important category of modern financial management. In the market-oriented economy, the enterprise is facing the threat of financial risks. There are certain risks among no matter raising fund activities, investment activities, cash flow operations, external guarantee and transnational management. However, the balance between risks and profits is the basic principle of modern financial management. The enterprise value will be achieved in the future, and the future is always connected with some elements. With the development of enterprise organization scope and the increase of market competes, more and more lessons caused by financial risks appear one after another because of serious improper financial arrangement. So the managers should not only consider market demand environment, changes of producing skills, but also think how to strengthen the controlling of financial risks, how to plan combination investment of dispersed risks, and reduce the capital structure risks. All above reminds us: The financial operation concerns the overall and long-term development problems. The failure of each activity related to may induce the financial risks, and then lead the enterprise into difficult position.The essay based on fundamental theories, systematically and effectively analyses the risks of fund raise, investment risks, management risks, joint guarantee liability, and find out the deep reason why the company faces huge financial risks, then help the company to take defense measures. At last, the essay explains how to use early detecting and warning system to evaluate and defense all the risks. Because the writer experiences all the management activities of H company from going public successfully to becoming ST company facing going private, so the writer has deep thought and lots of experiences about the understanding and harm of financial risks. So the writer hopes enterprises should pay more attention to financial risks, through the analysis and study of financial risks of H company to strengthen the construction of company administration structure, enhance the interior account control, make a balance between enterprise development and financial operation, control the financial risks in a certain limit, in order to keep the enterprise a long-term, stable and healthy development.