Research On Prevention Of Financial Risk In Enterprises

The telecommunication industry of China has developed rapidly since 20 th century,it can be said that there are three large telecommunication enterprise groups in the telecommunication market of China,which are China Unicom,China Mobile and China Telecom after kinds of reorganization and innovation.And the market of telecommunications industry oversea in developed countries has been almost mature by this time,in American,many telecommunication enterprises have financial fraud history,exaggerate profit,finally filed for bankruptcy,such as the WorldCom's bankruptcy because of violation and exaggerate profit,Light Squared--the US wireless operator was forced to file for bankruptcy protection for the reason of failed to reach an agreement with creditors in 2012,and the old brand AT&T which seems still strong today has been gone throw many times of merger and acquisition.Many examples abroad show that the existence of financial risk has a bearing on the survival development of telecommunication enterprises.In China,telecommunication enterprises are new and on the progress of becoming more mature,it is the time of critical period for their development now.In particular,it is necessary to put the prevention of financial risks in an important position when the enterprises managing their grow strategic management.Analyzing the original of financial risk,choosing correct method in analysis of financial risk and using the appropriate pre-warning system can reduce the financial risk of enterprise effectively.This paper mainly discusses several aspects about financial risk and the ways of prevention of financial risk by using a case study.First,it summarizes the characteristics of financial risk in telecommunication industry,then analyzes the causes and classification of financial risk,expounds the ways of financial risk management.Finally,taking China Unicom as an example,using the comparative method to analyze the data of financial statements,it finds out the financial deficiency,and puts forward some precautionary measures against the financial risk.It is about 300 million market users of China Unicom,and its circulation market value is about 135.8 billion.The early warning financial risk system will be not only benefiting to the internal staff of China Unicom,but also for the majority of its shareholders and clients.