Analysis Of Effective Means For Enterprises To Strengthen Financial Risk Management

A correct understanding of the sources and types of financial risks is a prerequisite for financial risk management. But how to manage financial risks effectively, correctly control and guard against all kinds of financial risks is fundamental. Enterprise financial risk management is a means and basic tool for enterprises to avoid or reduce risks in financial risk measurement, prediction, decision-making, prevention and treatment, which is used to complete the task of financial risk management. Specifically, we should start with the following aspects:

First, enterprises must set strict standards. Control plan The right risk management method should be adopted to reduce risks. In the course of financial activities, some risks can be predicted and controlled in the planning stage. The actual situation can be compared with the planned situation, and the control effect can be analyzed. Some risks are unexpected and can not be predicted. We should identify the source and nature of risks, calculate losses and try to find the best way to control or weaken risks. The way to avoid financial risk is to balance the economy with the biggest safety factor. We should use the system thinking mode to set up a comprehensive financial risk management system at different levels and angles, set up an early warning system based on the risk analysis of financial management, proceed from two aspects of qualitative and quantitative analysis, and analyze the risk of financial management in Enterprises Based on the understanding of the internal and external business environment and the national industrial policy, and then draw the ideas and specific methods of risk analysis conclusion and problem solving.

Second, enterprises must be sound. financial risk Management mechanism. For risk bearers, first of all, it is required to establish a correct sense of risk, to clarify their responsibilities from the legal and economic aspects; secondly, to give risk bearers certain investment decision-making power, financing power and fund allocation power, so that decision-makers can fully consider the changing internal and external environment of enterprises while exercising their rights, and carefully consider the financing, use and distribution activities of funds. Thirdly, we should make risk bearers enjoy the risk reward, and have clear responsibilities and interests, and mobilize their enthusiasm. Establishing and perfecting the financial risk mechanism also requires enterprises to distinguish the responsibility of risks and determine the channels for enterprises to compensate the risk loss, so as to truly reflect the effectiveness of enterprise risk control and management.

Third, enterprises should establish short-term finance. early warning system To prepare cash flow budget and prevent failure. Because the object of corporate finance is cash and its liquidity, in the short term, whether the enterprise can continue or not depends on whether it is profitable or not. It depends on whether there is enough cash for all kinds of expenses. The compilation of enterprise cash flow budget. It is a very important link in financial management. Accurate cash flow budget can provide early warning signals for enterprises, so that operators can take early measures. In order to compile cash flow budgeting accurately, enterprises should gather specific targets and express their expected future earnings, cash flows, financial status and investment plans in a quantitative way, establish a comprehensive corporate budget, predict future cash receipts and payments, and build a rolling cash flow budget.

Fourth, we must strengthen the daily management of enterprise funds and improve the use effect of funds. The procedures for examining and approving funds should follow the principles of convenience, efficiency and control, and set up corresponding capital approval procedures and powers in advance. Set the permissions at different levels, and set clear approval limits at each level. If the approval amount is approved within the jurisdiction of this level, if it exceeds its jurisdiction, it will need to be reported at the first level. Enterprises should check the use of funds regularly or irregularly to understand the overall situation. They should also set up special inspections to find out deep-seated problems in the implementation of capital budgets, follow up the management of accounts receivable and other transactions, and link the performance of business personnel with the recovery rate of funds, and formulate corresponding reward and punishment methods to minimize the loss of bad debts.