Fuzzy AHP-based Financial Risk Assessment Of Power Company

Power companies and beneficial to the people’s livelihood are closely related, so their financial risk status is particularly important. Financial risk of power companies is getting more and more attention from government, investors and operators. Assessing the financial risk of power companies scientifically and reasonably and controlling financial risk effectively are important for sustainable development of power companies. In this paper, fuzzy analytic hierarchy process has been used to evaluate the financial risk of power companies. Firstly, the meaning and the causes of financial risk have been introduced. We identified the financial risk categories of power company on the basis of analyzing the characteristics of power companies. Secondly, we selected some relevant financial indexes, and established a set of relatively complete financial risk index system. By combining fussy mathematics and AHP, we formed a multi-hierarchical financial risk evaluation model. Finally, we applied the model to evaluate the financial risk of A power company, and put forward some countermeasures and suggestions for controlling financial risk.