A Study On The Financial Risks Of Small And Medium-Sized Enterprises In China And The Precautionary Measures

Financial risk arising from the business process,is the financial operation of the uncertainty.As enterprises in the daily business process,the enterprise's financial system will be subject to many difficult factors expected,so that enterprises are difficult to complete the task in accordance with the expected financial benefits,the performance of real financial income and expected deviation.The existence of financial risk,so that enterprises may have the possibility of loss.From the current economic theory analysis,the financial risk of enterprises is mainly reflected in the micro level,is the form of corporate risk monetization,embodies the business in the face of the risks.Changes in corporate financial revenue and expenditure and financial returns directly reflect the degree and size of the business risks faced by enterprises.From the current economic point of view,corporate financial risk may exist both in terms of corporate finance,investment,capital operation and income distribution,or equity investment,business combination,exchange rate changes.In the case analysis of the reasons for the bankruptcy failure of many large enterprises at home and abroad,we find that the investment decision errors of enterprises managers and the neglect of financial risks are important factors.Therefore,how to prevent and deal with financial risk has become an important subject in the modern operation of enterprises.The research of corporate financial risk is of great significance in theory and reality.At present,with the world economic growth is weak,the global economic globalization is facing great challenges,domestic and international development environment there are many unstable factors,the sustainable development of SMEs received a greater impact.For small and medium enterprises,take a positive means to continuously enhance the ability of early warning,and actively take the initiative to find the daily business management of the various risks exist to explore ways to prevent the problem of defusing the risk.For continuous innovation,enhance their ability to adapt to the environment,to ensure that their fierce competition in the establishment of long-term survival and development of the core competitiveness.Small and medium-sized enterprises is an important part of the development of China's national economy,concerned about the development of SMEs and the difficulties faced by China's economic development is an important aspect,and corporate financial health is reflected in the business development of an important standard,so the establishment of effective financial Risk management system,to prevent corporate financial risk has become an important means to ensure the safe operation of SMEs.On the basis of collecting a large amount of theoretical data,this paper studies the specific cases,draws on the previous research results and analyzes the specific problems,and analyzes the financial data of Company A,and puts forward the financial risks faced by SM companies.Internal control system,enhance the awareness of risk prevention and the establishment of enterprise financial risk early warning system and other aspects of specific solutions.The main purpose of this paper is as follows:First,we can understand the financial risk of small and medium-sized enterprises in enterprises.Second,we can further explore the measures of financial risk prevention and control,hoping to help our small and medium-sized enterprises to reduce and deal with the financial risks of enterprises.