Research On The Construction And Application Of Financial Risk Early Warning Model Of D Company

Power industry is the basic energy industry in China.Whether the power system can operate safely,stably and continuously is related to the national economy,the people’s livelihood and social stability.However,the current international situation is complex and changeable.Under the treacherous macro environment,the production and operation activities of enterprises are facing many uncertainties.How to effectively prevent financial risks is an urgent practical problem to be solved.As a management means of prior control,financial risk early warning management can timely reflect the financial activities that lead to the deviation between financial results and expected income,and warn managers to avoid risks or formulate Countermeasures in advance.Therefore,a set of scientific and feasible financial risk early warning model is particularly important to ensure the healthy development of enterprises.Based on the improved efficiency coefficient method and financial risk early warning theory,this paper constructs a financial risk early warning model,and selects D company,a large power generation enterprise in the power industry,as a case study to analyze the applicability of the early warning model.Firstly,the standby financial risk early warning indicators are determined according to the enterprise performance evaluation standard value 2020 issued by the state owned assets supervision and Administration Commission.Based on the designed evaluation table of the importance of financial risk early warning indicators of electric power enterprises,the alternative indicators are screened for the first time,and the secondary screening is carried out through Pearson correlation test to determine the financial risk early warning index system;Then,the entropy weight method is used to weight the specific indicators,the improved efficacy coefficient method is used to evaluate the alarm situation,and the financial risk early warning model is constructed.Secondly,it introduces the basic situation of D company,analyzes the financial risks of D company from both external and internal aspects,and then expounds the necessity and feasibility of establishing financial risk early warning model of D company.Thirdly,substitute the financial index data of company D from 2014 to 2020 into the constructed financial risk early warning model,calculate the comprehensive early warning results and specific index early warning results of company D,and analyze the results.Finally,in order to ensure the smooth operation of the financial risk early warning model of company D,five safeguard measures to promote the efficient operation of the financial risk early warning model are put forward,in order to provide reference for the financial risk early warning of similar enterprises.