Financial Risk Assessment Of WN Electric Power Company

Along with the increasingly fierce of market competition, the uncertainty of enterprise management is increasing, and the possibility of financial risk crisis is more and more serious. And the financial risk is unavoidable in the process of obtaining the enterprise profit. Therefore, the evaluation of enterprise financial risk, and take the appropriate measures to prevent and control the enterprise financial risk, is foundation of the long-term stable development for an enterprise.Electric power enterprises are the pillar industry of the national economy, it’s stability has important influence on the whole country’s or region’s development and progress. With the development and reform of electric power system, power enterprises gradually shift from monopoly to market development, the financial risks are increasing. In2002, the state council issued the electric power system reform plan, introduced market competition mechanism into electric market and broke the monopoly of the traditional business model, the electric power enterprise gradually turned into marketization, this makes the electric power enterprise faced double challenge of the pressure from competition in the market and the regulation,. All of these undoubtedly bring the financial risk to the electric power enterprise in many ways. With the development of economy, people pay more attention on environmental protection, for the sake of atmospheric pollutants caused by the thermal power enterprise, the environmental protection department of the state issued in2012a new power plant on air pollutants emission standards, under the widespread losses condition of the thermal power enterprise, in order to achieve such a strict standards, it will increase the extra burden on enterprises, increase the possibility of financial crisis. Therefore, the scientific and reasonable evaluation of the electric power enterprise financial risk is of great significance to the electric power enterprise steady development.In this paper, it includes five parts:the first part briefly summarizes the research background and significance, the research results of home and abroad; the second part is defining the relevant concepts; The third part introduced the electric power enterprise characteristic and electric power enterprise financial risk factors, identification of the electric power enterprise financial risk; The fourth part evaluated the finance risk of WN power. According to the characteristics of the electric power enterprise and the "refers to the system for performance evaluation of state-owned capital" issued by the ministry of finance institutions jointly, choosing the appropriate risk evaluation indexes, combining with the basic principle of AHP, to build financial risk evaluation model, and then evaluate the financial risk of the WN power; Finally, according to the empirical results proposed the main conclusion, and put forward corresponding suggestions and prospects.In this paper, the innovation lies in:(1) the innovation of research-content. In this paper, the choice of evaluation index system of financial risk is based on the characteristics of the electric power enterprise, and modifies the traditional financial risk evaluation index. This enterprise belongs to the electric power industry, the risk factors of electric power enterprises include external risk factors in addition to internal factors, the external risk factors is also very important influence on the electric power enterprise financial risk, such as the electric power system reform, the environmental protection policy, price policy, low high coal price and so on. So the choice of evaluation index system is according to the characteristics of the electric power enterprise and the "refers to the system for performance evaluation of state-owned capital" issued by the ministry of finance institutions jointly, and in terms of index weight determining, this external is special considered.(2) Innovation on example. This article selects2010-2012financial statements data of WN electric power, and chooses the appropriate financial risk evaluation index system according to the characteristic of company, by using of the basic principle of AHP to construct financial risk evaluation model to evaluate the financial risk of the WN power.