Small And Medium-sized Enterprise Financial Risk Control Research

Risks lurking in all aspects of production and operation, not only resulted in a direct loss of indirect losses. Risk management is the important functions of the modern enterprise management, and it has become one of the key factors of business success. In the financial system of the modern enterprise, the enterprise is usually the cost of the loss apportioned costs increase only increase the sales price of the product, if the companies do not want to lower profits, which in turn will weaken the competitiveness of its products in the market, so that enterprises in the market at a disadvantage in the competition. Especially in the modern social and economic life, the assets are increasingly concentrated, firm size and value of the assets is growing, the business environment has become increasingly complex, companies therefore face more complex risks, and increase social and economic life of uncertainty and social in this context, the possibility of huge losses of wealth increasingly showing the importance of the risk management business, enterprise risk management by its risk identification, analysis, estimation, in order to achieve the reduction and compensation risk loss, reduce business costs, and improve economic efficiency. Enterprise risk management is the core of the financial risk management, financial risk management focuses on the relationship of the balance of risk and return and risk of loss, ahead of the management and control of the financial risks that may arise, and the protection of the sustainable development of the enterprises. The status and role of SMEs in China’s national economy is increasingly significant, relationships, social stability and economic development. However, SMEs are still not getting enough attention, especially in the financial risk management. With China’s accession to the WTO and the socialist market economic system gradually established and improved, SMEs face of increasingly fierce competition at home and abroad, facing internal and external environment is more complex. How to adapt to changes in the environment, and improve the ability to resist risks become a real and serious problem in front of SME managers. Therefore, the study of SME financial risk management, has a very important theoretical and practical significance. This thesis a simple introduction to the concept of China’s small and medium-sized enterprises and financial risk control, followed by the use of financial risk control and analysis of the status of specific data on SMEs in China, again dissect its financial risk control problems, and propose how to build model, the establishment of corporate financial risk control system strategy recommendations.