Research On Financial Risk Control Of Growth Enterprise

China's economy in the transition process gave birth to many growth enterprises. Since growth enterprise could maintain high-speed growth, could generate huge economic benefits, could bring unprecedented power and new life, our country' economy will certainly promote the rapid and sustainable development. Therefore, the growth enterprises have great prospects for development. But growth enterprise are often also the most prone failure, because in the process of rapid growth, if the enterprise's financial risk control was weak, growth enterprise could fall into the abyss of loss even bankruptcy. It is clear that the financial risk control questions of growth enterprise are very important.This paper uses the standard research analysis method and case analysis method to develop research work. Firstly, this paper reviews the results of previous studies about financial risk control of the domestic and foreign experts and scholars in detail, mainly from risk management and internal control perspectives, which provides a reference for this study. Secondly, this article analysis utility theory, internal control theory and risk management theory, which provide the theoretical basis for the construction of financial risk control system for the growth enterprises. After the theory of financial risk is described, it defines the meaning and characteristics of the growth enterprise with the aid of the theory of financial risk. The nature of growth enterprise is high growth and they must be accompanied by the rapid growth of high-risk. Examining the financial risk control of China's growth enterprise, most problems are existed in varying degrees:the limited nature of internal accumulation and difficulty of external financing, unreasonable capital structure, investment behavior of the blind, bad investment decisions and slow cash flow problems. This article exposes the causes of those financial risks from the macro-environmental and internal factors of the two aspects, then contributes a more feasible system of controlling the growth enterprise risk. This system puts the net cash flow as the direct control aim, puts enterprise value maximization as the highest control aim, the financing cash flow, and puts the investing cash and the operating cash flow as the control object. For the existence of financial risk of growth enterprises, we proposed budget control, fund-raising risk control, investing risk control and working capital risk control, and gives the reasonable and effective control measures for the specific financial risks. Finally, this paper gives the example of measures of the financial risk by means of the City Companies Energy Co.,Ltd.This paper analyzes the financial risk problems which the present growth enterprises face in-depth. It has contributed a more feasible basic frames of controlling the growth enterprises'financial risk to achieve the objective of maximizing net cash flow, which provides a new perspective for the financial risk control study of the growth enterprises.