Research On Financial Risks Of Enterprise Based On Cash Flow

Nowadays, the economic environment is complicated. Economic fluctuation, market competition and the information asymmetry make enterprises facing various uncertainty, and risk management has become an important part of enterprise management. Financial risk as the key link of risk management is important in the process of development of enterprise. Cash is a relatively scarce resource in the period of time,the operation process in the enterprise, from the cash investment, production and sales until the cash back the realization that in this series of sessions, the adequacy and effectiveness of cash survival and development of enterprises will play a crucial role.This paper first introduces existing enterprise financial risk assessment method, and analyzed their defects, then from the angle of cash flow, puts forward the enterprise financial risk evaluation of the cash flow method, and explains the cash flow method advantage. In this paper, the corporate financial risk assessment model combines the cash flow and the BP neural network to construct a new enterprise system for financial risk assessment, both to overcome the existing financial risk of the defect, and also play the artificial neural network advantage. In the empirical part of the wine industry of the 27 listed companies as samples, the above model that was constructed out of a financial risk assessment was used, the results show that the financial risk assessment model constructed to achieve the desired effect. Finally, from operating activities, financing activities and investing activities of the three aspects of financial risk control are described.