A Research on Control and Prevention of Financial Risk in Enterprises
Shumei Liu
Abstract
Shumei Liu
Abstract
Enterprises' financial situation has a direct affect on the survival and development,thereby affecting China's economic development and social stability.In order to avoid the bankruptcy,to adapt to complex environment,to ensure the smooth progress of the normal business activities,we must guard against financial crises and get financial risks under control.Starting from the meaning of corporate financial risks and classification,combined with problems existing in our enterprise financial risk control,a penetrating analysis is made on the causes for the financial risk of our business.Measures for the controlling and prevention of our enterprises from financial risks are suggested.
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Enterprises' financial situation has a direct affect on the survival and development,thereby affecting China's economic development and social stability.In order to avoid the bankruptcy,to adapt to complex environment,to ensure the smooth progress of the normal business activities,we must guard against financial crises and get financial risks under control.Starting from the meaning of corporate financial risks and classification,combined with problems existing in our enterprise financial risk control,a penetrating analysis is made on the causes for the financial risk of our business.Measures for the controlling and prevention of our enterprises from financial risks are suggested.
Key concepts: Business, Guard (computer science), Risk prevention, Financial risk, Bankruptcy, Control (management), Finance, Business risks