Study On Financial Risk Control System Of Caihong Thermoelectron Corporation

With the deepening of China’s socialist market economy and the rapid development of economic globalization, facing more and more, more and more complex financial risk in the process of development of enterprise Because of financial risk can not be avoided and can cause huge losses, the enterprise must be able to identify, evaluate and take measures to avoid, reduce, share and resolve risks, otherwise it may cause the financial crisis. So, this paper analyzes the financial risk and control of CAIHONG ThermoElectron Corporation, and helps it to establish financial risk control system, which has practical significance and far-reaching impact on the survival and development of CAIHONG ThermoElectron Corporation.Based on the theory of enterprise financial risk, this paper applies the theory of financial risk management and internal control, and forms a general understanding of the enterprise’s financial risk analysis and control. Based on these theories, this paper makes a brief analysis of the basic financial situation of the company, and identifies and analyzes the financial risk of the company’s financing activities, investment activities and business activities.I used the "Z" score method to evaluate the financial risk of the company. The problem of financial risk control of the company was found out and the reasons for the problems were analyzed. Finally, the complete financial risk control system based on the COSO framework is established.The financial risk control system proposed in this paper provides theoretical support and guidance on how to deal with the financial risk in the future development process of CAIHONG ThermoElectron Corporation, and provides some reference for the thermal production industry, to help enterprises to improve their financial risk control.