Study On The Financial Risk Evaluation Of Trust Industry

Financial risk management is an important topic of enterprise management. Currently, how to evaluate the enterprise financial risk reasonably and accurately has become a focus of research content. In recent years, with the development of China's capital market, prevention and control of financial risk has become a major issue faced by enterprises. Trust, as a high risk industry, is facing a more complex financial environment of investment and financing after several times revamping. And now prevention and controlling of financial risks has become an important part of the trust industry. So it is significant for managers and investors both in theoretical and practical fields to assess the financial risk of trust industry.This thesis is composed of 6 parts. Firstly, with AHP and based on the current development status of the trust industry in our country, it briefly introduces the background and significance of the study on the thesis. Secondly, it makes an overall reference comments on the domestic financial risks evaluation. Thirdly, based on the study on the theory of the financial risks evaluation from other scholars, it analyses the current status of the financial risks in the domestic trust industry and summarizes the causes and identification methods of the risks. Fourthly, combined with the risks, their features and their causes, it establishes the index system in the risk evaluation system. Fifthly, by means of AHP's comparison matrix, it calculates the weight to get the overall evaluation ratings and analyses the factors of the financial risks. Last but not the least, it concludes that the factors are capacity of profitability index, debt-paying ability or liquidity index, operating capacity index, growing capability index. Not only the conclusion helps the management make the comparative analysis and quickly identify the major factors that influence the financial risks of the enterprise, but also studies the root causes of the risks. Besides, it provides the investors in the trust industry in our country with the guideline to risk investment decisions.