Research On The Construction Of Financial Risk Early Warning System Of Three Squirrels

In the context of the new era,China’s leisure food retail industry has shown great potential,with rapid expansion of the industry scale.However,its rapid development has led to companies neglecting quality and sudden changes in the domestic and foreign market environment,which have dealt a certain blow to the industry.Especially for enterprises mainly engaged in e-commerce sales,their sales situation is greatly affected by the external environment.At the same time,the high platform fees and raw material costs have also caused certain pressure on their operations,A slight mistake can lead to financial crisis.Enterprise financial risks exist objectively and cannot be completely eliminated.Therefore,it is necessary for enterprises to always pay attention to the risk status and take timely measures.Establishing a financial risk warning system can help enterprises control financial risk trends in advance,seize the opportunity,control financial risks within an acceptable range,and avoid irreversible losses caused by financial risk outbreaks.This paper chooses Three Squirrels Company as the research object.On the one hand,three Squirrels has problems such as relatively conservative management system,poor development of offline channels,etc.,and its financial activities are easy to be affected by external and internal environment.On the other hand,in order to improve the current predicament,the three Squirrels are in the process of promoting the strategic transformation of the enterprise.Under the background of both opportunities and challenges,it is very important to strengthen the early warning and prevention of financial risks.First of all,the paper reviews the relevant literature and theoretical basis of financial risk and early warning.On this basis,the operation overview,financial situation and financial risk early warning situation of the three squirrels are analyzed,and points out the existing problems of financial risk prevention and control of the three squirrels,and then proposes the necessity of establishing a financial risk early warning system.Secondly,by combing the theories related to financial risk early warning in the early stage,taking Standard Value of Enterprise Performance Evaluation as the reference basis and combining the characteristics of the industry and enterprise,20 financial indicators are selected from four levels of financing,investment,operation and profit distribution,and then entropy method and correlation analysis are used to screen indicators and assign weights.After that,the improved efficacy coefficient method was used to calculate the index score value,classify the warning level,and construct the financial risk warning system suitable for the three squirrels.Finally,the 2017-2021 data of the three squirrels is put into the constructed financial risk early warning system for early warning application.Based on the analysis results,suggestions on preventing financial risks are put forward,and several safeguard measures are proposed for the good operation of the financial risk early warning system,in order to strengthen the enterprise’s financial risk early warning ability,and further promote the three Squirrels to successfully complete the strategic transformation.Embark on the path of high-quality development.