B Engineering Group Financial Risk Early Warning System Discussed

Risk is uncertainty of future result in modern management theory. Uncertainty means that there exist two possible results: gain or loss. In the process of managing a enterprise, influence of risky factors to enterprise management should be considered. Enterprises have to adjust their development strategy to the changing environment, if they want to keep the growth rate. To some extent, management risk of an enterprise is financial risk, which is the currency image of management risk. Therefore, analysis, monitoring and forecast of financial risk are crucial activities of enterprise management. The aim of establishing financial risk forecasting system is to efficiently monitor enterprise management and make prudent decisions under different levels of risk through systematic manners. By doing this, the enterprise can adjust itself to internal and external changing environment, achieve its management goal, and maximize its value. This research is to analyze Group B's financial risk in its management and establish financial risk forecasting system to monitor and forecast risk, which will let the enterprise keep its business activities steadily and continuously, and get the maximum profit by the minimum cost. This research is composed of 4 parts: Part 1 deals with Group B's basic financial environment, meaning and classification of financial risks, analyzes the major risky items in Group B's management and brings forward keep-away methods. Part 2 deals with theory of financial risk forecasting: relationship between financial risk and its forecasting, characteristic when the financial risk changes to financial crisis, environmental analysis of financial risk forecasting, basic factors and process for financial risk forecasting and methods of financial risk forecasting, which pave the way...