Introduction To Enterprise Financial Risk And Control

The financial risk of enterprise is that the enterprise is in process of financial activities, due to various factors which no telling or control, the financial situation of uncertainty, so that losses suffered by businesses possibilities. Enterprise financial risk resulting from the modern enterprise financial activities of various complex environments, and always exist in the business activities of enterprises. "Asian financial crisis", "the United States subprime mortgage crisis", the reason is due to the financial risk control caused by the economic crisis. Financial risk on the surface, is the funding chain break currency crisis; but, in essence, is the enterprise by way of debt to capital structure of the enterprise blind expansion, a high proportion of liabilities,anti-risk ability, and unable to resist changes in the market environment that brought by the business risk. So, when a slight change in the market environment, many enterprises are caught in a dilemma between many well-known enterprises, collapse overnight. Large-scale enterprise in Wenzhou "run away" phenomenon tells us once again that the financial risk everywhere. Therefore, how to detect risk early, and prevent and control the risk, is an urgent task for the enterprises.In this title, as a case of M company, through the M company’s finacial risk prevention and control of analysis and study, it could cause the business community attaches great importance to the finacial risks, strengthen finacial warning system to establish and strengthen corporate governance structure, strengthen internal accounting controls, using the right way to balance the enterprise development and financial operationgs. Control the financial risk in controllable range, and then make the enterprises to maintain long-term stable and healthy development.