| Enterprise operations are often subject to a great deal of uncertainty,and the resulting financial risks can have a very negative impact on the normal operation of the business.In severe cases,the failure to respond to financial risks may cause the company to go bankrupt.Therefore,how to effectively prevent the enterprise’s financial risks has become one of the main tasks of the enterprise’s finance department.Existing financial management theory holds that a financial risk warning model constructed on the basis of a specific indicator system can effectively alert enterprises to potential financial risks,thereby improving their ability to respond to financial risks.Therefore,it has become a common practice for many enterprises to develop financial crisis warning models that are suitable for the specific business environment of the enterprise.However,due to the existing financial management practices,the financial risk early warning systems of many enterprises do not match the actual operation of the enterprise in terms of model design and indicator selection,which results in the developed financial risk early warning systems not being able to perform their proper warning functions and instead becoming a huge waste of resources.Based on risk management theory and financial risk early warning theory,this paper uses the random forest model method to build a financial risk early warning model that is consistent with the actual operation of LQ companies.The paper first reviews the relevant literature on financial risk and financial risk early warning models,which provides a theoretical basis for the selection of the subsequent financial risk early warning models.Second,using the financial data of LQ Company,the financial status of LQ Company was examined from four aspects: debt paying ability,profitability,operating ability and development ability.A financial risk warning model for LQ Company was constructed by combining risk management theory,capital structure theory and financial risk warning theory.Once again,the financial risk warning model of LQ Company was used to analyse the financial risks of LQ Company from 2016 to 2020.It was found that the financial risk warning results displayed by the financial risk warning model were effectively consistent with the actual financial risk performance of LQ Company from2016 to 2020,which verified the effectiveness of the financial risk warning model for the financial risk warning of LQ Company.Finally,based on the design process of LQ Company’s financial risk early warning model,this article believes that in order to improve the early warning ability of the financial risk early warning model for financial risks,it is necessary to select appropriate financial risk early warning methods based on the actual situation of the enterprise,and pay attention to effectively combine the selection of early warning indicators with the specific industry reality of the enterprise itself. |
