A Research On Financial Risk Control Of Military Enterprises

Military enterprise is one of the most important part of China’s socialist market economy, which is not only an important force in the state economy, but also related to national security and national interests of the major units. China’s socialist system determines that China’s state-owned military enterprises nature, but with the changing of national macro-policy, the traditional military industry also enter into a civil-military integration stage of development, military enterprise continue to participate in the market business and develop civilian market. Market economy must have operational risks, and there must be a financial risk. Military enterprises of traditional state-owned enterprise, have long-term operating history, part of them can be traced back to the reform and opening up, the historical background decide the military enterprise management methods and business ideas. It may be backward the market economy. The long-term impact of the planned economy led by the military enterprises in the financial risk awareness is relatively weak; many military enterprises have no Control efforts of special financial risk.This thesis selected30listed companies as samples of military, analyzes its past three years relevant financial data, concluded that the current military and several listed companies significant financial risk characteristics:First, the asset-liability ratio is growing. Second is to be receivable is too large. Third is too large inventory asset turnover is low. Fourth is weak profitability. Fifth is poor cash flow. Then, from the external environment in which military enterprise and business model and internal management aspects of the military enterprise analyze the causes of the financial risk from the external point of view. In recent years, international and domestic economic environment is poor and with state-led economy to join the private military industry, resulting in original military enterprise operations and profitability decline. From a business model, military profits and funding sources specific unity, but also an important factor in causing financial risk; from the internal point of view, because the long-standing plan impact of the economic system and the quality of talent reasons, military industrial enterprises on the financial risk control awareness is weak and lacking the ability to control financial risks.In conclusion, analysis of the military class enterprise financial risk characteristics and origin, the thesis selected a local military industrial enterprise groups as case analysis to explain the operation of the company’s current situation and development trend of the financial situation. Then focus on the enterprise asset-liability ratio, accounts receivable, inventories, profitability indicators and financial situation, point out where the financial risk and cause analysis. Finally, according to its own characteristics S Enterprises proposed to build S Military Group’s financial risk control system. First is necessary to establish an independent financial regulatory authority, second is to establish early warning system for financial indicators and third is to establish a unified financial management system, fourth is to establish a unified management platform, fifth is to establish a unified system of internal controls, sixth is to strengthen financial personnel. This military enterprises as financial risk control studies, the risk control methods on other military enterprises also serve as a reference.