Research On Early Warning System Of University Financial Risk

In order to make further prediction for the university financial risk and provide clearer explaination of its analysis,S University is researched as a target of financial risk prediction in this paper.Under the leadership of the principal who is in charge of the finance,the financial mechanism of S university is organized,planned and operated by the financial department.By the end of 2016,the school's asset liability ratio was 11.2%,a decrease of three percentage points compared with 14.3% in 2015,remaining in a relatively low level.As far as the above two aspects are concerned,the overall financial risk of S colleges is low and the financial status is good.However,financial risk is always underlying in sound finance;this paper makes a comprehensive analysis of S University's financial risk in terms of its capitl turnover,the allocation of funds,the use of funds,the main joint liability.Through this analysis,the S university,in the process of financial management,has effectively avoided the long-term financial risk by reducing its debt ratio,improving the frequency of using its own funds and using other measures.So in general,the S University has a good financial condition.However,while avoiding long term financial risk,it faced out the usual financing strategy featured by exchanging the length of time for financial width,leading to the increase of short-term financial risk in S university.The amount of short-term financial risk accounts for small proportion of the budget and final accounts,and all of these are liable to be ignored by the decision maker before the crises break out,but schools that really have short time to respond to such a sudden issue are likely to be affected seriously.According to the ratio analysis results,this paper reveals that three problems exist in S university: unreasonable structure of liquid assets and net assets and over proportion of its own funds for a long time.And according to the above three problems,three specific measures are proposed: improving the turnover rate of funds,fueling capital efficiency and developing capital use ability.Through the theoretical summary and case analysis,it is found that the flexible use of contrasting ratio analysis and horizontal comparison of the results can be very beneficial to accurately predict effect on the deep level of financial risk,which can be effective methods to relugate risks.This method is widely used to better integrate the modern financial management system into the financial work of universities,to provide direct mitigation experiences of financial risks for those decision makers,and to put forward the risk management measures.