The Research Of Financial Risk Warning Model About Higher School

With the change of "elite education" to "public education" in higher education. Colleges achieved leapfrog development, but because of continuous expansion of enrollment in recent years, the contradiction between school conditions and educational development are increasingly prominent. Under funds and revenue raised can not meet the building needs, the colleges mostly to solve the problem by bank loans. Then, the colleges have to concern the financial risk in the development of universities. However, reality, most colleges have not paid enough attention on the financial risks, not to establish an effective prevention mechanism, not draw up the relevant prevention system, still apply financial decision-making mechanism under the planned economic system. That cause financial imbalances, investment out of control, heavy burden of debt, cash flow difficulties and other issues. So, these conditions directly affect the effectiveness of the colleges, bring the hidden danger in further development. For this purpose, it is necessary to establish an effective financial risk prevention system and warning models to ensure financial security of higher school and promote healthy and rapid development of universities. This paper, on the basis of exposition about forms and impact of financial risk in higher school, explain necessity and importance to establish warning systems. In the analysis of existing circumstances, this paper chooses the Shanxi provincial colleges'financial data as example. The writer apply neighborhood rough set model to attribute reduction for alternative early warning indicators, in order to control financial risk. The results show that, neighborhood rough set attribute reduction is better than the classical method of rough set reduction and other analysis, it can be achieved higher classification accuracy with fewer features variables, at the same time, it can reflect the financial position of the higher schools more accurately, it can provide judge method more convenient for decision makers .