Research On Financial Risk Early Warning Of SH Pharmaceutical Company

With the aggravation of population aging and the deepening of medical and health system reform,China's pharmaceutical industry has ushered in new opportunities fordevelopment,but also faces challenges.The pharmaceutical industry is an industry group with high investment,high return and high risk.In addition,the increasingly stringent policy environment,the industry's financial risk is increasing.If the company can not prevent and resolve the financial risks timely and effectively,it is likely to get into operational difficulties.At this time,it is necessary to establish a perfect early warning system to detect the abnormal financial conditions in time and take effective measures to avoid financial risks.In this paper,the object of study SH company is a pharmaceutical company,operating conditions is not so stable in recent years,the company's existing financial risk early warning work method is simple,And it need to establish a perfect financial risk early warning system urgently to guard against and defuse financial risks.When building the financial risk warning system for SH pharmaceutical company,firstly,through reading a large number of domestic and foreign literatures on financial warning,I sorted out the main research methods of financial warning,found the advantages of the efficiency coefficient method through comparative analysis of the warning methods,and selected and used this method to build the financial warning model.Secondly,combined with the analysis of the internal and external risk environment,financial status and early warning management status of SH pharmaceutical company,I think it is necessary to establish the early warning system.Thirdly,combining the correlation analysis and entropy method to screen the indicators,the early-warning index system was constructed,and the weight of the screened early-warning indicators was assigned.At the same time,the efficacy coefficient was improved appropriately,the evaluation standard value and warning interval were determined,and the effectiveness of the warning method was verified by selecting ten listed pharmaceutical companies for effectiveness test.Finally,the efficacy coefficient method was used to calculate and analyze the annual financial warning status of SH pharmaceutical company from 2013 to 2017,so as to discover the potential financial risks of the company and predict the future financial situation of the company.At the same time,the corresponding risk prevention measures are given for each link and the overall financial risk situation of the enterprise,which can help the company reduce the impact of financial risk in operation andmaintain the healthy and stable development of the company.