Research On The Impact Of ISO Quality Management System On Financial Quality Of Small Business Based On FAHP

Due to the rapid development of market economy,small and medium-sized enterprises have become an indispensable part of the national economy.In order to survive in the increasingly competitive market,companies need to improve their abilities to control financial risks.At the same time,many large enterprises have obtained the ISO quality management system certification,which was imitated by many small and medium-sized enterprises.The certification process is time-consuming and cash costly.During certification the financial risks of SMEs may increase due to the insufficient funds,incomplete quality systems and other problems.Therefore,it is crucial to study whether the ISO quality management system certification process increases or decreases the financial risks of SMEs.Common methods to evaluate financial risks include single variable judgment model method and multiple linear evaluation model method etc.But on the other hand single variable cannot fully reflect the comprehensive financial situation,on the other hand multivariate linear models do not take the growth of enterprises into account.And the two methods are both more suitable for large companies rather than SMEs.As a result,a more suitable method,the fuzzy analytic hierarchy process(FAHP),is put into use in this work.The FAHP methond combines qualitative analysis with quantitative analysis,and takes multiple objectives and the development of enterprises into account.The discussion of how ISO system affects SMEs' financial risks barely exists in the existing research.This article studies S enterprise's,introducesthe basic situation of this company,selects 12 financial indexes and uses FAHP method to build structure of SME financial risk evaluation model.The indicators of financial risks are analysed and evaluated before and after the enterprise obtained the ISO certification(2015-2017).And other factors such as internal characteristic properties,the impact of external environment are ruled out.The following conclusions are drawn through calculation and analysis: after the introduction of ISO9001 quality management system,the S enterprise improved product quality,reduced production cost,increasing customer recognition and as a result,indirectly redued the financial risk of the enterprise.