Research On Financial Risk Evaluation And Prevention Of H Ltd Based On Entropy Weighted TOPSIS Model

In my country,the information transmission,software and information technology service industries have been rising rapidly since the 1990 s,and are now in a stage of rapid development.Under such a large environmental background,the Internet and related service industries have maintained rapid growth and have great potential.However,my country's Internet and related service industries are also facing problems such as insufficient innovation and inadequate safety supervision during the development process.So in the process of rapid development of enterprises,financial risks also follow.In the background of the rapid development of the Internet and related service industries,this paper,taking H ltd as a research case,analyzes the financial risks by establishing a reliable model,and provides effective measures to avoid risks.By referring to domestic and foreign literature on financial risk evaluation and financial risk analysis models,this paper analyzes the company's financial risk,builds a financial risk evaluation system based on the entropy weighted TOPSIS method,and gives measures and recommendations to reduce the risks.First of all,this article explores the financial risk of H ltd from four aspects,financing risk,investment risk,operational risk,growth risk as well as the risk of cash flow.Through the evaluation of corporate financial risks,the author finds the causes to rise the risk of H ltd from the internal and external respects.Then,this paper builds a financial index system,calculates the weight of each index by Entropy weight method and ranks the evaluation objects by TOPSIS.Finally,combining the characteristics of the industry and its own situation,H ltd put forward suggestions to prevent risks to promote the continued operation and development of the enterprise,and at the same time provide some reference for other enterprises in the same industry.