Research On Financial Risk Analyzing And Controlling Of XDJM Company

Financial risk is a possibility of economical loss in business' actions such as raising funds,investing,recovering capital,and distributing benefit,owing to some unanticipated and uncontrolled factors.Financial risk affects the enterprise's survival, development and profitability,and must be prevented and controlled as soon as possible.Therefore,analyzing of corporate financial risks using scientific method, seeking the cause of those risks and proposing concrete solutions in practical applications are very important for enterprise's high-speed and healthy development.This paper first introduces the main theory and method of risk analysis, evaluation and control.Then with the experience of actual job,potential financial risks of XDJM CO.is analyzed and evaluated using financial reports analysis, leverage analysis and sustainable growth methods.At last,some financial risk prevention and control measures are proposed from strategic,management and implementation levels.The main conclusions of this paper include:(1) XDJM company's major financial risks are:high risk of accounts receivable, the risk of decreased profitability,cash flow risk,the income tax legacy risks, investment risks and financing risks.(2) XDJM company's risk defense awareness is not strong enough for company is in the rapid growth phase.In order to response to financial risks and other risks,its own risk management system should be set up.And some approaches should be implemented immediately,such as establishing risk fund to transfer and to digest the impact of risk and training professionals financial risk manager.(3) XDJM the company's financial risk controlling measures includes:to establish sound internal control system,to seize the critical control points,to set up enterprise financial warning systems,to set up a comprehensive budget system,to strengthen the accounts receivable management and internal audit independence, effectiveness and timeliness.Although those conclusions are drawn for XDJM,we hope it will be helpful to other Chinese high-tech small and medium-sized listed companies in high growth phase.