Research On G Company’s Financial Risk Assessment System

Financial risk is the barometer and weathervane of enterprise risk.If an enterprise wants to develop and grow,it must pay close attention to financial risk and avoid risk turning into crisis.As a member of the small household appliance industry,G Company’s business faces both at home and abroad.Affected by Sino-US trade war,changes in consumer demand and improper investment strategy,enterprises are facing delisting difficulties and financial risks.In order to discover risks in time,enterprises need to establish a financial risk assessment system.This paper analyzes G Company’s financial risks,comprehensively reviews the existing researches on financial risks,obtains relevant information of company evaluation and details of evaluation,and based on this,analyzes the company’s financial risks,and builds a relatively perfect risk evaluation system for G Company to help it find hidden risks as early as possible and actively deal with them.First of all,it introduces the general situation and industry status of G Company and the existing financial risk assessment system.Based on the existing methods,it identifies and evaluates the financial risks and causes of G Company from 2011 to 2017 from the perspectives of financing,investment and operation,and analyzes the problems existing in the system from three aspects of assessment organization,assessment process and assessment method.Then,according to the second chapter of financial risk analysis,relevant financial and non-financial indicators are selected,an evaluation model is constructed by using analytic hierarchy process,financial executives and auditors score the importance of the indicators by using questionnaires,and the weight of the indicators is obtained by calculation.Introducing the standard value of five indexes in the enterprise performance evaluation,calculating the score of a single index by using the efficiency coefficient method,and calculating the single index,the standard level index and the comprehensive index ex-weighted,establishing the financial risk level by referring to the enterprise performance evaluation level,and constructing a new financial risk evaluation system.Finally,the new and old evaluation methods are used to evaluate the financial risks of Company G in 2018,and the two methods are compared and analyzed to clarify their respective advantages and disadvantages and confirm the effectiveness of the new system.Put forward some measures to ensure the new system works.This paper sets up a new financial risk evaluation system for company G in order to help it find out and take corresponding countermeasures in time to realize the long-term development of the company,and also to inspire peers’ risk evaluation and risk control.