Research On Financial Risk Prevention Of AY College In Private Colleges

The People's Republic of China Law on Promotion of Private Education was passed at the 31 st meeting of the Standing Committee of the Ninth National People's Congress on December 28,2002.This Law will come into force on September 1,2003.July 31,1997 the State Council promulgated the "Regulations for the Administration of Social Services" abolished at the same time.Private universities in Henan Province,as meeting the demands for education,have been growing and developing again like mushrooms,hence they constitute a significant force in Henan Province Advanced Education which cannot be ignored both in volume and influence.So does AY University.However,as the national economic and culture ecology strode forward greatly and the financial crisis brought adverse impacts,AY University,like many other private universities all over China,has to construct more hardware facilities continuously and enroll more students unlimitedly,during which the government also makes use of the influence of AY University to stimulate local economic growth.Such a large-scale expansion has brought a dual effect.If a university intends to realize a large volume,it is necessary to get a large amount of capital support,obtain more channels to introduce funds,and make fullest use of these funds in the university construction and development.Therefore,it has attracted more and more focuses on and attentions to the problem of how to minimum the financial risks of AY University to realize its health and good development.Accordingly,eliminating the financial risks exposed to AY University become extremely urgent.At present,there are no provisions in terms of fund raising and using released for private universities in China,so if the financial problems can be solely optimized by a university itself,the financial system of the university must be full of loopholes and represent many problem internally.Therefore,the financial management of AY University,like many other private universities,is extremely fragile to some extent,as it hasn't established a reasonable and effective risk prevention mechanism,hence it is relatively difficult to prevent risks.This paper is written on the background of the financial risk problems and circumstances which the national private universities are facing.The beginning part of this paper summarizes the financial risk prevention of private universities theoretically and makes a relevant literal review,after which it introduces the existing situation of the financial risk of AY University and relevant reasons in details,and proposes corresponding solutions based on different categories for the risks existing in A Universities.Afterwards,this paper extracts new ideas and defects,and conceive plans for further studies.In conclusion,this paper has certain reference significances to the identification,assessment,prevention and control of financial risks of AY University,aiming to avoid financial risks and promote the healthy,stable and sustainable development of AY University.