Financing Risk And Its Avoidance Of Major Sports Events(Activities)

With the scale of major sports events (activities) expanding to make the event more and more in a variety of uncertainties in the organized process, and resulting in the increased risk of events. At present, Chinese scholars primarily through insurance and other methods to reduce the risk of major sports events (activities), this paper attempts from a financial perspective, comprehensive and systematic analysis of the financing risk of major sports events (activities).Understanding of major sports events (activities) financing risk causes and possible consequences, through these analysis, finding the avoidance of major sports events (activities) of some methods of financing risk. To reduce the scale of major sports events (activities) to carry out risk, so that events can be carried out smoothly.This paper mainly from the scale of major sports events (activities) to the organizing committee’s point of view for the large scale sports events (events) financing risk analysis. In the major sports events (activities) in the development process, the main reason for causing the financing risk financing activities in the future the actual result, deviating from the expected results and the possibility of large-scale sports events, ultimately (activities) not according to the Organizing Committee and supplier of funds of the signed contract and other contracts agreed terms to ensure supplier of funds is expected to the results of the implementation of. Because of the raising fund source and the capital structure of different sports events (activities), the organizing committee will face different risk financing.There are three kinds of financing risk of major sports:borrowing capital risk, capital risk and capital structure risk. To these three kinds of financing risks, we can strengthen the financing process in advance, in the matter, and after the control; suit one’s measures to local conditions, according to the different financing object, set up different methods of financing and return; strengthen the financing and capital management, achieve balance clear; skillful use of financial leverage restriction, to consciously adjust the interests relationship; establish financing risk prediction system, reduce the unnecessary loss; financing through the transfer of risk to reduce the influence of financing risk.