Research On Financial Risk Early Warning Of DZ Company

As the main body of market competition,enterprises must always face the risk of ubiquitous,and among these risks,the most important is financial risk.Financial risk as the risk of manifesting the enterprise,its reasonable control is particularly important in the management process.By strengthening the consciousness of financial risk prevention,establishing the risk early warning mechanism and taking corresponding preventive measures in time,enterprises can effectively avoid their own financial crisis.The DZ company studied in this paper is a comprehensive iron and steel enterprise,in recent years,with the continuous implementation of China's macroeconomic policy,the steel industry as a whole,although the overall fluctuation upward,but in the steel enterprises to bring opportunities at the same time also bring no small challenges.Under the condition of large fluctuation of operating condition,how to control the financial risks existing in the company,enhance the profitability of the company,and ensure the steady development of the company is particularly important.Therefore,this paper constructs the financial risk early warning model for DZ Company,and judge the company's financial risk situation in time,so as to avoid the unfavorable factors in the company's operation.This paper first clarifies the background and significance of the topic selection,through the current domestic and foreign financial risk early warning related research summary and review,determine the research content and thinking of this article.Secondly,it expounds the relevant theories and concepts of financial risk early warning,and under the theoretical support and comparative analysis,it is determined that this paper will construct the early warning model by using the effect coefficient method.By analyzing the financial status quo of DZ company and the internal and external financial environment,this paper puts forward the necessity of constructing financial risk early warning system,and the feasibility of establishing early warning model for DZ company by using the effect coefficient method.Finally,the financial risk early warning model of DZ Company is established from many aspects,and the financial data in the past five years are applied to the model.Through the research of this paper,it is found that the financial risks of DZ Company from 2013 to 2017 are in the state of severe warning,moderate warning,very serious warning,moderate warning and moderate warning respectively.The financial risk state as a whole is good,but the fluctuation is large.And the financial risks that the company will face in the future are not optimistic,need to strengthen vigilance.After further research,it is found that the financial risk of the company is due to profitability,solvency and development ability risk,therefore,from the improvement of these three aspects of risk situation,for the company to put forward the corresponding prevention recommendations,such as the establishment of a professional and effective financial risk testing department,improve operating income to reduce operating costs,expand the high value-added industry chain,etc.,in order to the company can operate steadily.