Research On Financial Risk Assessment System Of XC Company

Electric power industry is an important basic industry in China.The production and supply of electric power is related to the national economy and people's livelihood as well as the o'verall economic and social development.China's economy has shifted from the high-speed development stage to the high-quality development stage.The economic situation is stable and getting better the whole society's electricity consumption is growing steadily,and the overall situation of power supply and demand is loose.With the reduction of state support for the power industry,the power industry will face new challenges.At this critical moment,it is particularly important to grasp the financial risk of enterprises.This paper takes XC c:ompany as an example to study its financial risk assessment system.Firstly,the background,significance,and relevant theories of the thesis are discussed.Secondly,a brief introduction of XC company combined with the specific situation of XC company.The financial risk evaluation system of XC company is studied from the three aspects of the company's financial risk evaluation process,evaluation index and evaluation method,and finding out the existing problems.These problems include:incomplete evaluation process,evaluation index is comprehensive,and evaluation method is not appropriate.Then,improvements of the design are suggested to resolve the existing problems in the financial risk evaluation system of XC company.With improvements made on the evaluation process,based on the original financial risk evaluation process,one should increase the preparation work before evaluation and the improvements after evaluation.In terms of the improvement of the evaluation index,it selects 14 indicators from the five aspects of corporate profitability,operating capacity,solvency,growth,and cash flow.On the improvement of the evaluation method,the original evaluation method is changed to factor analysis method so as to reconstruct the enterprise's financial risk evaluation system.Next,the improved financial risk evaluation system is used to evaluate the financial risk of XC company.Finally,aiming at the implementation of the improved financial risk assessment system,this paper puts forward specific guarantee measures from three aspects;organizational guarantee,talent guarantee,and cultural guarantee.The perfect financial risk evaluation system is guaranteed to improve the enterprise risk prevention ability.Based on the basic situation of XC company and the status quo of its financial risk assessment system,and combined with the actual development situation of XC company,the financial risk assessment system of XC company is improved in the hope of contributing to the financial risk assessment of XC company.