| With further development of the market-oriented reform, China’s enterprises’ choices of investment and finance have become diversified. However, they also face a more competitive situation, the prediction and control of financial risks become more important. Since the financial risk can not be avoided, it will cause economic damage to enterprises and even lead to bankruptcy without control. Therefore, the identification of potential risk in financial position, constructing a suitable evaluation system and taking effective measures to control the risk is particularly important. The analysis and research of financial risk of CL company, the exploration of risk prevention mechanism and controlling measures in this paper is of vital practical significance.In accordance with the theory of finical risk management, this paper analyzed the financial condition of CL company from three aspects, the identification, assessment and control of financial risk. Firstly, according to industry condition and national economic policy, the external risk factors were analyzed CL company. Then the average financial data of peers were taken as a reference and compared with the the finical data of CL company in recent years. It was found that CL achieve little in terms of ability to pay debts, profitability and the cash flows. And there is a big financial risk in this company. After Identifying the potential financial in CL Financial companies, this paper applied the factor analysis and selected the financial data of 52 peer companies, including CL, in 2013 as samples. On the basis of financial indicators of to ability to pay debts, profitability, operating capacity, development capacity and cash flow, this paper established a financial risk evaluation system to evaluate the financial risk CL. It was found that CL was one of the lowest ranked locations. What’s more, its ability to pay debts and operational capability was ranked at last. There was high funding risk and operational risk in CL company. Finally, according to the analysis of CL company’s financial risk and the result of assessment, the financial risk prevention measures were proposed on account of the company’s maximum operating capacity and debts paving ability for the finical risk, including the optimization of the capital structure, improving the ability of decision-making, perfecting inventory management system and reinforcing accounts receivable management, which aims to optimize the company’s financial risk management system and give reference to other companies’ financial risk management. |
