Research On Manufacturing Enterprises Financial Risk

After decades of development, China has become the world’s manufacturing powerhouse. Manufacturing industry holdsan important position in the national economy. But since the financial crisis, various unfavorable factors after another, has mademany Chinese manufacturing enterprises feel the pressure. In this context, the manufacturing enterprises financial risk hasbecome the pressing problems of its survival and development. How to resolve the problem of financial risk’s early warning andprevention has become a major important issue.For that, in this paper, the writer discourse the financial risk’s early warning and prevention based on strategic management,performance management, internal controls and financial indicators respectively on the basis of comprehensive description of itsmeaning, characteristics, types and internal and external causes, and trying to build a multi-angle, multi-view, multi-facetedfinancial risk’s early warning and prevention system. On the aspect of the perspective of strategic management, on the base ofthe comprehensive analysis of manufacturing enterprises’ strengths, weaknesses, opportunities and threats, looking formanufacturing enterprises development strategy and financial risk management strategy; On the aspect of the perspective ofperformance management, through the use of Balance Score Card and strategy-oriented, Decomposing it into specific strategicobjectives and actions based on the four interrelated dimensions of Finance, Customer, Internal business processes and Learning&Growth; On the aspect of the perspective of internal controls, describing the current status of internal control and perfecting itthrough the five elements of Internal environment, Risk assessment, Control activities, Information&Communication andInternal supervision; On the aspect of the perspective of financial indicators, solvency indicators, operational capability index,profitability indicators, capacity development index and comprehensive financial analysis indicators were selected and analyzed.Finally, through the analysis of questionnaires for53manufacturing enterprises in Ningbo Boned Area, the writer furthercorroborated and clarified the actual awareness level of each factor and each indicator of characteristics, types, internal andexternal causes, management status and the relevance of financial early warning indicators of manufacturing enterprises financialrisk.