Financial Risk Identification And Preventionresearch On Pharmaceutical Enterprise In China

In the marketing economy, the enterprise faces many complications and continuous changes of social economic environment. For the development of a business enterprise,operational and financial risk has a major implications. Once the risk of outbreak, The enterprise will cause risk. For the pharmaceutical companies, Intense competition in the market will make a significant change in business development strategy. The evaluation and the control of the financial risk is necessary for the enterprise. The same is true in pharmaceutical enterprise.This research analysis the financial profile of the North China Pharmaceutical Corporation, and identify financial risks and potential financial impact of reasons. After evaluation, suggestions for improvement for the NCPC now there are problems, for similar enterprises also have great reference.This paper is divided into six chapters, the main content of each chapter describes as follow:Chapter one is introduction.It describes the background and significance of this paper.Chapter two summarizes the domestic and international financial risk management theory.It comments the research of financial risk warning and analyze the existing literature studies in the financial risk of China’s pharmaceutical industry.Chapter three introduces the basic theory of financial risk and point out the definition of financial risk.This chapter also proposes financial risk management procedures and analyze the method in every steps.Based on Prmcipal-agentTheory、Capital Structure Theory-. Portfolio Theory and Cybernetics,it provides theoretical support for the latter part of the discussion.Chapter four introduces the basic situation of NCPC. By analyzing a variety of financial risks of financial data it identifies financial risk that exist now. The main risk reflectes in four aspects of financing, investments, accounts receivable and revenue recovery. It identifies and analyze factors affecting.Chapter five is the NCPC financial risk assessment. By analyzing financial data of the pharmaceutical industry, this chapter use factor analysis. In order to identify differences between NCPC and other pharmaceutical companies,it establish financial risk assessment model.And then find their own problems to identify appropriate measures.Chapter six makes specific control recommendations from four aspects of financing, investments, accounts receivable and revenue recovery.It can optimize financial management system,,Compared with previous studies,this research has different scope and methods. The selected case is representative of the pharmaceutical industry enterprises. It constructed financial risk assessment model by factor analysis. Their risk identification and evaluation select financial indicators and non-financial indicators. To make recommendations on the basis of in-depth research, it enrich the perspective of financial risk in the same industry.However, due to the relative scarcity of data and the limited ability of the author, this article is still inadequate in principle indicators and failed to fully tap the financial risk factors. But in this paper study is mainly for listed companies, a large number of non-listed pharmaceutical company fail to incorporate the evaluation range.