Kam Heavy Financial Risk Prevention

JINZHOU HEAVY MACHINERY CO. , LTD. is a state-owned large-scale enterprise among machinery industry. Like most state-owned enterprises, this company also has problems of high assets-l iabi I ities ratio and serious financial risk. The reason of generation of financial risk can be divided into internal causes and external causes. Internal causes mainly include: unclear of property right of enterprise and imperfection of reform of system; overburden of enterprise; nonstandardized behav i or of enterpr i se; unsoundness of system of operators se I ect i on, act i vat i on system and supervisory system. External causes mainly include: little support for reform of state-owned enterprises from state; imperfection of system of state-owned commercial banks and underdevelopment of capital market; unsoundness of social insurance system; lag of structural reform of government.According to the analysis of reason of generation of financial risk of JINZHOU HEAVY MACHINERY CO. , LTD. , various measures must be adopted to prevent financial risk. Firstly, general clew of the prevention of financial risk should be found out, then secondly, reducing assets-liabilities ratio by combining reform of property right, thirdly, control I ing outlay of cost, and finally real izing the control of financial risk through perfecting management system. If measures are correctly carried out, JINZHOU HEAVEY MACHINERY CO. , LTD. wi I I overcome financial difficulties and develop toward satisfatoriness.