The Study On Early Warning And Prevention Of ZMQY Company’s Financial Risk

With the rapid development of China’s economic construction, pillar position in the national economy of building industry has become more evident. From historical data, construction output has increased from 28.7 billion in 1980 to 15.93 trillion in 2013, the number of construction enterprises has increased from 6604 in 1980 to 79,528 in 2013.Development is a double-edged sword, for the construction industry, it brings opportunities, also challenges. Regulation by the state industrial policy,economic fluctuations and other macro-factors,as well as increased raw material prices, labor costs and other micro- factors, tremendous development has received, as well as a series of financial risks. The rapid expansion of the scale, increasing pressure on corporate finance, risk is increasing every day. If these risks are not respond promptly, it will affect the development of construction enterprises. Therefore,enterprises must establish a set of their own financial risk early warning model,timely control and prevent financial risks, to ensure the the healthy and smooth development.In this paper, based on the experience about financial risk early warning and prevention of other scholars, we take ZMQY construction companies for the study, start a series research of financial risk early warning, assessment and control. First, make a preliminary presentation for the basic financial status of ZMQY company, take qualitative and quantitative analysis from two aspects,the accounting and financial analysis, on the basis of the annual financial data 2008-2013. Then, based on the application of AHP to determine the weight of early warning indicators, use efficiency coefficient method and construct the company’s financial risk early warning system of ZMQY, emphasize the results of accurate verification on past data. Finally, for the results of the above analysis, propose a number of measures and proposals to prevent risk, and provide support for the healthy and smooth development.Any early warning mechanism to prevent financial risks will not be perfect, the proposed early warning system still have many limitations and shortcomings, it does not reflect the problem of enterprise administration, personnel and resource management, so cause one-sided analysis. Looking forward to future studies,we can further broaden the research content, get a more comprehensive grasp of risk warning.