Research On The Construction Of Financial Risk Early Warning Index System Of L Company

There are both opportunities and threats in complex market environment.If enterprises do not know themselves in fierce competition,identify risks,assess the situation and carry out strategic adjustment and risk control,they will eventually be eliminated.Many large modern enterprises have established financial risk early warning mechanism to identify risk early.The building decoration industry plays an important role in the happiness and stability of people's life and the development of the social economy.Although the real estate industry is booming in recent years,the number of building decoration enterprises is increasing and the risks are increasing due to the low technology content and low entry threshold.Therefore,enterprise managers can't ignore the risk identification and control.Through establishing a sound financial risk early warning system,we can make early warning for risks and find risks in business activities and prevent enterprises from going bankrupt.L company's main business is the building decoration business,the net profit in recent years is a loss state,and it is necessary to further strengthen the risk management.So,this paper takes the L company as the research object,the first warning related theories,and then analyzes the risks of L company faces and financial early-warning problems,and also to construct the financial risk early warning system and a simple application,finally put forward the safeguard measures to construct the financial early-warning index system.This paper selected early warning index for L company,the traditional financial indicators,and according to the characteristics of the architectural decoration joined the project management and cost management related indicators;establish the financial early-warning index system,using AHP method and efficacy coefficient method,first used the AHP to determine the weight of each index according to the importance of the index,then calculate the fraction of efficacy indicator using the efficacy coefficient method,finally obtains the comprehensive efficiency of the whole enterprise coefficient,determine the level of risk.Through the research on the construction of the financial early-warning index system of L company,this thesis aims to help L building decoration company to build the financial early-warning index system of science,so that it can more accurately predict the risk,effectively prevent risks,more scientific risk control,to enable the building decoration enterprise can be more stable and long-term development.At the same time,it also provides a reference for the enterprises in the same industry to build an early warning index system.In addition,by building this index system,the simple application of L company's financial data in 2016 will also provide some reference for L stakeholders,including business managers,creditors and external investors.