Research Of Financial Risk Assessment Of Listed Companies Based On Internal Control

As an open system,enterprises are always under the influence of internal and external uncertainties.When these factors cause the financial goals of enterprises deviate from expectations,financial risks are generated.There are various factors that cause financial risks.These factors run through various activities of an enterprise and transmit risk through certain paths,ultimately lead to financial risks.As an important means of risk management,internal control plays an important role in the prevention and control of financial risks.Therefore,this paper believes that the study of financial risk should be based on risk assessment and discovery of risk factors,it's purpose is to control risk.Risk factors are not only related to financial indicators,but also related to the nature of enterprises,such as listing years and other indicators related to internal control.Therefore,the prevention and control of financial risks should be systematic and integrated,and an effective internal control system should be established within the enterprise.Based on the theory of financial risk and internal control,this paper uses 1:1 paired Logistic model to reveal the factors which influence enterprise financial risk,and use the Wilcoxon rank sum test to determine whether there was a significant difference in these factors among different types of enterprise,and then analysis the relations between the factors and financial risk in the view of the “gap” between two types of enterprises.It not only reveals the importance of different factors on the possibility of causing financial risk,but also make the different enterprises can use the horizontal comparable information to evaluate financial risk they faced.The research results show that the factors affecting the effectiveness of internal control will also have a significant impact on enterprise financial risk in addition to the traditional financial indicators,it further proves the importance of the internal control in prevention and control of financial risk.This paper then uses the results of empirical research and combined with the financial risk and internal control theory to give enterprises two advices in preventing and controlling the financial risk effectively.One is:building high-level tone throughout the organization and improving the effectiveness of internal control;the other is strengthening information communication between different departments.We believe that this research can raise awareness of relevant personnel in the risk prevention,control,and reduce the purpose of the enterprise financial risk.