Construction Of Financial Risk Early Warning Model Of CH Company Based On Efficiency Coefficient Method

With the continuous prosperity and development of our economy and the continuous improvement of the market system,more and more enterprises have appeared in the market.Some companies leave early in the market competition,while some companies can survive decades of years.The reason is that in addition to their own competitive advantages,the attention paid to risk is also very important.There are many examples of enterprises that have gone into bankruptcy in the capital chain due to risky operations.In order to properly control the financial risks of enterprises and avoid losses to enterprises,it is necessary to make an early warning of financial risks firstly and establish a suitable early warning model to quantify the risks of enterprises.This will provide management with an intuitive information on the financial risk profile of the corrtpany so they can take timely control measures to reduce financial risk.CH company is a pioneer in the home appliance manufacturing industry,but in recent years,its business has declined and its financial status has declined too.This paper took CH company as an example,and established a financial risk early warning model to warn financial risks.This paper first expounded the research status of financial risk early warning and prevention in China and abroad,and then stated the related basic concepts and theories.In Chapter 3,the status of CH company and its financial risk early warning was introduced.Then the efficiency coefficient method was introduced and a financial risk early warning model was established for CH company based on the efficacy coefficient method.In Chapter 4,the early warning model was applied and the results were analyzed,and corresponding risk prevention countermeasures were proposed.Establishing an early warning model is an effective way for enterprises to understand financial risks in a timely manner and is the first step for enterprises to control risks.Reasonable application of early warning models can help enterprises avoid financial crisis and minimize losses.The research in this paper is a good reference for CH company.