IR Company Financial Risk Identification And Control Research

Enron’s bankruptcy by the end of 2001 remained all relevant stakeholders’ enterprises (including business owners, creditors, employees, government, etc.) to identify research and financial risk control measures more and more attention. Based on the financial risk related to the theory and practice of research, combined with actual work, discuss the company’s financial risk control mode, in order to effectively identify IR in financial risk, financial risk analysis and assessment, and control financial risks plays reference, thus contributing to the healthy development of large-scale private enterprise.This paper systematically reviews the study of the history and current situation on the financial risk, it summarizes the financial risk identification methods and control technology. Then, the financial risk identification and control theories, such as the concept of financial risk, financial risk identification methods, methods of financial risk control, were introduced. Next, this paper analyzes the way from a qualitative risk financing, working capital risk, and capital recovery risk for IR financial risks identified and evaluated.The article uses the financial statements of the financial status of the risk analysis carried out to identify IR Company, at present, IR’s major financial risks facing the company are:debt risk, the risk of decline in profitability, accounts receivable credit risk, inventory risk funds used, liquidity risk and capital recovery risk. The financial risk recognition, IR’s business model and business strategy as the market changes are constantly changing, financial management systems and budget management system it established is constantly under construction. However, due to incomplete information technology, changes in the ability to finance and budget management tools inadequate, resulting in a financial risk identified deviation and hysteresis. Therefore, IR companies should establish a financial risk identification through the integration of information systems, the preparation of a cash flow budget, adopt the annual budget management responsibilities, etc., but to adapt to changes and establish a solid financial risk identification system. The financial risk control, IR company currently uses a dynamic response to changes in the macro-financial environment control method, but due to the dynamic of financial risk control methods not systematic, it is easy to make business in response to the scene to deal with specific problems, fatigue risk prevention measures improper phenomenon, enhance the real difficulty of financial management. Therefore, IR companies should target specific financial risks, establish risk identification results for the financial control measures, the risk prevention in the first place.