Research On Financial Risk Pre-warning Of Zhongtai Group

With the uncertain environment in modern market economy, Chinese enterprises are in conditions full of uncertainty, broad development space come with potential risks. According to the Enterprise Life Cycle Theory, it is natural for a company to go through from birth to death, however, many enterprises may encounter crisis and get worse in the development process, inspired from many failure cases. Financial risk is an objective reality, it may lead to bankruptcy of enterprises. So, it is significant for enterprises to notice existing problems and perceive financial distress signal from business activities so that operators can take measurements at the first time. From the above point of view, constructing effective risk early warning model is not only of theoretical value, but also has the important practical significance.Firstly, this paper takes the Zhongtai Group as an example, analysing the financial status and the financial risk management of Zhongtai Group, pointing the financial risks and financial risk management problems it is facing. Secondly, this paper construct financial risk warning indicator system according to the construction principles, establishing the financial risk early warning model based on Efficiency Coefficient Method and verifying its effectiveness. Finally, pre-warning and analyzing the financial risk of Zhongtai Group with the system. In the end, this paper pointing out the specific ways to prevent the occurrence of financial risk.After the analysis of financial risk early warning system of Zhongtai Group in this paper, we can find that the company should speed up transformation and upgrading, strengthening working capital management, building dynamic financial risk early warning system to prevent the occurrence of financial risk. The shareholders, creditors, suppliers and other stakeholders can take this analysis as reference when making the decisions. Additional, this analysis can also provide some reference for the establishment of modern enterprise financial risk early warning system.