Corporate Cash Flow Risk Assessment Methods

The cash flow management is becoming the important content ofenterprise's financial management, and the evaluation of cash flow risk isthe core of enterprise's cash flow management, the information of whichis of great significance to investor's decision-making and to the enhanceof enterprise's financial risk management. In recent years, domesticscholars have strengthened the research of Financial Risk Warning system,but they haven't acquired satisfying production on the question that howto evaluate the cash flow risk effectually through reasonable methods.This thesis puts forward that the Fuzzy Comprehensive Evaluationmodel is an appropriate method to evaluate the cash flow risk, based onthe analysis of the characteristics of cash flow risk and the comparison ofall kinds of risk appraisal methods. When structuring the model forevaluating the enterprise's cash flow risk with Fuzzy ComprehensiveEvaluation, the confirmation of weights assigned to the cash flow riskfactor affects the correctness of the evaluation result directly. Founded onthe analysis of the limitation of several recent methods for confirmingfactor weights and in allusion to the characteristic of cash flow risk, thisthesis suggests adopting Structural Equation Modeling to confirm thefactor weights, and then, combining to the building of the cash flow riskindex system, structures the advanced model of evaluating the cash flowrisk. And at last, this thesis testifies the applicability of the advanced model for evaluating the cash flow risk through demonstration research.The returns of this thesis hope to provide some beneficial reference to theevaluation of the cash flow risk.