Research On The Financial Risk Pre-warning For HY Metallurgical Bureau Of Geology & Exploration

With the development of economy, crises and challenges with which enterprises are faced may be everywhere at any moment, because of the more and more complex environment and the fierce competition. Financial risk is among these risks and it can’t be ignored, because effectively controlling and preventing it is the key point of operating an enterprise in a consistent way. Financial risk may exist in every link of business operation, a scientific and effective pre-warning system would help to find the possible risks and to lower the possibility of being in crisis, which runs through the whole process of enterprise production activities and is an important part of enterprise risk management.Geological exploration industry controls national mineral resources, the stability of its economic development affects the national economy to a great extent. In recent years, global prospecting expense input decreases sharply, domestic mining industry is affected by the financial crisis and its own cyclically adustion, geological exploration industry is adversely affected especially commercial geological exploration industry. Social investment and exploration fund decrease. It’s estimated that a further slowdown will be in the investment. In the same time, with the promotion of the classification and reform of institutions, most of the geological exploration units are classified as public class two, which means that reduced national financial allocation would push the industry to the market and the previous units would be transformed into enterprises. Along with opportunities and challenges, financial risks come also.The thesis includes five parts.In part one, I overview the research background and significance and introduce the research findings at home and abroad. In part two, I define and introduce relative theories about financial risk. In part three, I summarize the characteristics of geological exploration industry, and analyzes financial risk management in Huaye Geological Exploration Bureau. In part four, I construct Huaye Geological Exploration Bureau financial risk pre-warning model, which is based on The State-owned Capital Performance Evaluation Index System released by financial department, for which I choose the proper risk evaluation index, use Analytical Hierarchy Process and the improved efficiency coefficient method. In the end of the thesis, I present conclusions and corresponding measures.The innovation points in this paper as following two aspects:the first, the innovation in research content. Previous researchers always choose traditional financial risk early warning system, this paper chose the HY Metallurgical Bureau of Geology&Exploration as the object to study. The unit is a part of the geological exploration industry, Aimed at the industry’s financial risk research is less.Combining with the characteristics of the industry,This paper has constructed the financial evaluation index system and correction of traditional financial risk evaluation index system.The second,Choose three years of 2012-2014 annual final accounts statements data for analysis of HY Metallurgical Bureau of Geology&Exploration combined with practical.The application of hierarchical analysis to determining a financial index weight, then Take the improved efficacy coefficient method to determine the early warning alert area,the last,Using the system to evaluate HY Metallurgical Bureau of Geology&Exploration financial situation analysis and give advice and suggestions.