The Origin and the Prevention of Enterprises' Financial Risks

The word is derived from the western economic theory. It indicates uncertainties of all the possible results under certain condition in one period. With economic development, enterprises will be confronted with various risks, among which financial risks exist in every link of enterprises' financial management. If it wants to be successful in fierce competitions, the enterprise must reinforce the prevention and control of financial risks. Therefore, it is of great importance for enterprises' development to study on the concept of financial risk, its origin and the prevention in order to reduce the risk emergence probability, the losses, and to realize the increase of economic benefits. The paper generally discusses those issues.