| SMEs are the main force in the enterprise, and its development is directly relatedto the healthy development of the national economy. With the changing externalenvironment, SMEs are faced with increased uncertainty and risk everywhere.Management of SMEs in China is relatively low, especially in the current financialaccounting system, which is still in the stage of simple accounting functions ofaccounting. High demand and low levels of financial management of modernenterprises in stark contrast, especially for small and medium enterprises to said guardagainst financial risks is a top priority.This paper studies the concept of financial risk to proceed, detailing the financialcrisis early warning concepts and theories, and to study the current situation relatingto the establishment and use of domestic and foreign financial early warning models.By analyzing the causes of the financial risks and X Corporation currently exist, thenecessity and feasibility of establishing a financial early warning system, andaccordingly pick out a targeted financial early warning indicators, and fromprofitability, solvency, operational, growth capacity Quartet face financial earlywarning indicators were analyzed. Then, the use of early warning indicator system tobuild the financial company’s financial risk early warning analysis to understand thecompany’s financial risk profile in recent years; also proposed specific measures toguard against financial risks, from the establishment of the organization ’s enterpriserisk, enhance risk education improve risk management awareness, expand financingchannels to strengthen the centralized management of funds, strengthening internalcontrol in four areas such as improving the ability to predict risk to ensure theimplementation of X Corporation financial early warning program. In addition, resultsof this early warning analysis also provides a reference for the shareholders, creditors,suppliers and other stakeholders interests of the company’s decision. |
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