A guard against study and analysis on financial risk
Abstract: the development speed of our country’s enterprises is faster and faster in recent years, but enterprises are facing the challenge of fierce competition, financial risk prevails. The labor, money markets of enterprise and their internal operational management all are having uncertainties. Because their funds are lack, the management level is low, the technical weak, and coupled with management lags are behind, and so on, which is objective to result the production and operation of enterprises in a greater risk. To enhance market competitiveness and speed up the pace of development, it has to prevent and evade financial risk. Therefore, enterprises strengthen financial risk management and control is imminent. Its purpose is to weigh the risks and benefits between the pros and cons, and make the expected proceeds from the smallest risk, some of the proceeds of the biggest risks in the decision-making. Will be controlled at the enterprise can bear the risk limits, and strive to improve the business receipts, thereby increasing the value of the business.
This article introduced the concept of financial risk, and the financial risk which enterprises encountered currently in the financial management, and this text analysis the reasons. At the same time, this text takes Hair Company as the example to introduce the preventive methods, which the enterprise used commonly in financial risk. Finally, the text forecasts the risks which enterprises will be faced in the future. I hope this text will help the enterprises to make decisions in financial risk management.
