Study On The Financial Risk Evaluation Of The Science Foundation Management

With the increasingly salient role of science foundation in supporting fundamental research, Chinese government escalates its annual financial allocation on National Science Foundation of China (NSFC) year by year. This has led to the development of NSFC's financial risk management, but there is a gap of the knowledge and practice in enhancing the value in a science foundation by using financial instruments to manage financial risk between NSFC and other foreign science foundation. It has become the one of issues to be solved out that the increase of funds utilisation which could be benefit from preventing the financial risks of the management of science fundation.At present, at home and abroad, researchers pay more attention to performance evaluation and strategic management of the foundation, rather than financial management. Moreover, most existing researches focus on the analysis of financial risk condition in enterprises, and it is not attainable to science foundation. As a result, the establishment of NSFC's appraisal system not only lacks its theoretical and practical basis, but also hardly satisfies the demand of NSFC's financial risk management. Hence, the research on financial risk evaluation of the science foundation management in China is of significance in theory and reality for achieving the aims of financial management of science foundation and sustainable development.This dissertation, integrating with the theory of financial risk management of non-profit organization, defined the financial risk of science foundation, based on the analyses of NSFC. In this dissertation, the financial status of the management of NSFC had been demonstrate and the its problems analyzed with respect to the following aspects: financial management system, the disbursement of budget filter as well as expenditure, the monitoring project balance of appropriation and internal monitor system. By the use of the experience of the financial management in foreign science foundation, the financial risks of NSFC was classified as expenditure, internal control, self supporting structure and use of founds, such four financial risk evaluation indicators system. This dissertation analysed the applicability of Controlled Interval and Memory model based on analytic hierarchy process(AHP) in the financial risk evaluation of science foundation, and AHP and Delphi method were applied in weight determining and scoring separately in CIM model. The merits of this model were that the refinement of the scoring process could find the weakness points of the whole financial system and the CIM model could be improved by managers. This dissertation provided the practicability of predicting ability of model used in case analysis, and applied NSFC as the case study. In conclusion, according the results of the analysis, it proposed the suggestions about the financial risk management of NSFC.