A Electric Engineering Company’s Financial Risk Assessment

With the deepening global economic integration and the increasing complexity of the market economy,China’s enterprises are faced with the dual national and international opportunities and challenges.In recent years,the rapid development of China’s urbanization,marketization and internationalization has pulled the growth rate of our power industry,at a speed of more than the average growth rate 20 years before.Which brought to power construction enterprises rapid growth and risks.China’s Power construction companies are facing unprecedented opportunities and challenges,their financial risk management has attracted more and more attention.A Electric Engineering Company(hereinafter referred to as “A Company ”)is one of the large-scale construction enterprises,which is in E category,belongs to Construction and Installation Industry.Since the construction industry’s characteristics are weak foundation,capital-intensive and the system does not regulate,A Company is facing various risks in the development process.Both inside and outside risk factors have put significant impact on the company’s operation,profitability and development,which increase financial failure possibilities into company.Therefore,A company’s financial risk evaluation is necessary,how to evaluate financial risks scientifically and reasonably and coming up with effective control measures are significant to the company’s continued stable development.AHP was choosed in this paper to evaluate the financial risk of A company.Through the way of combining characteristics of construction enterprises,construction enterprises’ financial risk factors were cleared and A company’s financial risk categories are identified;By Combing the financial risk factors and the state-owned capital performance evaluation system,a complete and reasonable financial risk assessment system was built up;Relevant principles of AHP was applied to establish a multi-level financial risk assessment model,combined with Efficiency Coefficient Method for standardizing financial indicators,the overall risk value have been calculated;Finally,put forward relevant countermeasures and suggestions of financial risk management and wish the company’s financial risk management more effective and more scientific.