Our Country College Financial Risk Control Study

In21st century, china enlarged the scale of higher education. With theincreasing of students’ number, school facility has been greatly improved.While the contradiction between the increasing demand of education fundinginputs and shortage of state financial fund on education made universities canonly take loan from banks to meet the end. As a result, over burdened loansand debt interest becomes obstacles on the way of university development.Under the guide of university financial risk control theory and financialrisk pre-warning theory, dissertation studied the situation and causes ofuniversities’ financial management, inspected the differences of financial risksbetween enterprises and university. According to the evaluation index systemprinciple, the dissertation selected12indexes like the cumulative total amountof loans to total assets ratio, the cumulative proportion of debt to total incomerisk, investment in infrastructure, financial risk, and cash payment ability ofrisk, carried out the financial risk assessment of the universities. Thedissertation builds an evaluation index system of the universities’ financialrisk and establishes the universities’ financial risk assessment mode. It takestwo of universities in Hunan province as cases to have a empirical analysis onits’ financial situation．According to the evaluation results, we should enhancethe government’s supervision and management to control the size of the loan,improve the loan system.