A Early-warning Research On Financial Risks Of Power Generation Enterprises

With the development of power system reformation, power generation enterprises will face more and more severe competition in their existence. In practice, the complexity of circumstance and the unpredictability of market make the existence of risk inevitable in power generation enterprises. There are many kinds of risks, include financial risks and non-financial risks. However, the final expression form of any risk should be financial risk. Financial risk is the most significant and comprehensive expression of all of the enterprises risks.Furthermore, the transformation between financial risks and financial crisis will not occur in a short time, but be a long-term accumulated and gradually developed process. In the different stage, financial risks shows different characteristic. Therefore, establishing a financial early-warning model, identifying the signal of risks, and adopting countermeasures which help to avoid and defuse risk, realizing sustainable development of enterprises, is very important to enterprises. This paper was just written under this background.First of all, this paper defined financial risk and financial early-warning, then took power generation enterprises as research objects, analyzed their risks in this period, including electrovalence policy, the supply-demand relationship of electric power, capital market, capital operation, the rationality of ratio between power generation and power supply, and internal control, and so on. This part layer a foundation for financial early-warning research, make readers know the reason to research on it.Base on that, this paper introduced principal component analysis to the financial early-warning research, established a financial early-warning model of power generation enterprise and verified it, just for providing clues for power generation enterprises to control financial risks. This part is the core and innovative part of this paper.At last, according to the conclusion of the financial early-warning model, this paper proposed relevant suggestions and measures to keep the financial risks in the scope of the early-warning value, for example, improving profitability, strengthening management of asset, improving the capital efficiency, decreasing financial cost, exploiting directed financing channels and the like. The part is the end of this paper.As a result, for power generation enterprises, this paper, in the aspects of controlling financial risks and keeping financial safety, has some referential significance.