Financial Risk Analysis And Control Of Internet Financial Information Service Industry

At present,with the development of information technology,Internet information technology has penetrated into all walks of life,subverting the way of information obtain and disseminate.It has caused profound effects on various industries.The financial industry is a core component of the modern economy.In recent years,with the growth of the wealth of our residents and the diversification of wealth management products,financial industry has obtained further development.Investors have higher requirements for the timeliness,breadth,and professionalism of financial information.So the Internet financial information service industry emerged as a response.Companies in the industry provide basic or higher-level financial information,big data processing,and other value-added services to the market to satisfy investors or related institutions' requirements of financial information,Data processing and financial product.However,with the intensification of market competition,Internet financial information service companies are faced with increasingly complex and ever-changing environment.The interaction of uncertain factors also increases the likelihood of risk occurrence.In this regard,industry enterprises must attach great importance to financial risks,use scientific methods to analyze and evaluate the possible financial risks of the company,and take effective measures to prevent and control the identified risks.This article first sorts out the related theories of financial risk,including concept,classification,reason and analysis,and introduces the business model and characteristics of the Internet financial information service industry.Based on this analysis,the financial risks were analyzed and identified based on the case of Shanghai Great Wisdom.The results showed that there was a certain level of debt repayment risk,investment risk,accounts receivable recovery risk,growth risk,and cash flow risk.The above risks are mainly due to the economic environment and the lack of corporate profits and internal management capabilities.In this paper,we use factor analysis method and F-score model to evaluate the financial risk of Shanghai Great Wisdom.The evaluation results show that in recent years,the overall financial status and the four major ability factors of Shanghai Great Wisdom have been deteriorating.As of the end of 2016,F-score model reveal that the risk assessment category of this company is bankruptcy.Based on the above identification and evaluation results,this paper proposes some suggestion in the aspects of internal control,financing,investment,operations and cash flow,such as improving internal controls,rationally adjustingcapital structure,strengthening feasibility analysis of investment plans,and strengthening control over accounts receivable.The risk control measures are expected to provide certain reference and ideas for the evaluation and prevention of financial risks of Shanghai Great wisdom.