Causes and prevention of financial risks of enterprises Abstract: The goal of business activities of enterprises is to pursue the maximization of wealth, and it is an important way to achieve this goal by using scientific methods to avoid financial risks reasonably. It is an important task for financial managers to carefully analyze the causes of financial risks, formulate preventive measures suitable for the long-term development of enterprises, and achieve advantages and avoid disadvantages. The goal of enterprise management activities is to pursue the maximization of wealth, and it is an important way to achieve this goal by using scientific methods to avoid financial risks reasonably. It is an important task for financial managers to carefully analyze the causes of financial risks and formulate preventive measures suitable for the long-term development of enterprises.

Keywords: financial risk prevention measures

First, the causes of corporate financial risk analysis

(A) enterprise financial management system can not adapt to the complex and changeable macro environment.

The complex and changeable macro-environment of enterprise financial management is the external cause of enterprise financial risk. The macro-environment of financial management includes economic environment, legal environment, market environment, social and cultural environment, resource environment and other factors. These factors exist outside the enterprise, but they have great influence on the financial management of the enterprise. It is difficult for enterprises to accurately predict and change the macro environment. Adverse changes in the macro environment will inevitably bring financial risks to enterprises. The environment of financial management is complex and changeable, and the change of external environment may bring some opportunities to enterprises, and it may also make enterprises face risks. If the financial management system can not adapt to the complex and changeable external environment, it will inevitably make the financial management of enterprises in trouble.

(B) corporate financial managers have insufficient understanding of the objectivity of financial risks. Financial risks exist objectively. As long as there is financial activity, there must be financial risks. The financial managers of many enterprises lack risk awareness and think that as long as the funds are well managed, there will be no financial risks. Weak risk awareness is one of the important reasons for financial risks.

(3) The confusion of internal financial relations is another important reason for the financial risks of enterprises in China. Enterprises have unclear rights and responsibilities and chaotic management in the management and use of funds and the distribution of benefits, which leads to inefficient use of funds and serious loss of assets, and cannot guarantee the safety and integrity of funds.

(D) Lack of scientific financial decision-making leads to decision-making mistakes. Financial decision-making mistakes are another important cause of financial risks. The premise of avoiding financial decision mistakes is scientific financial decision. At present, the financial decision-making of Chinese enterprises generally exists the phenomenon of empirical decision-making and subjective decision-making, which leads to frequent decision-making mistakes and financial risks.

(5) The capital structure of enterprises is unreasonable and the debt ratio is too high. In China, capital structure mainly refers to the proportional relationship between equity funds and creditor's rights funds in all sources of funds of enterprises. Due to the mistakes in financing decision-making, unreasonable capital structure generally exists in Chinese enterprises, which shows that debt funds account for a high proportion of all funds, and the asset-liability ratio of many enterprises reaches more than 30%. Unreasonable capital structure leads to a heavy financial burden and a serious lack of solvency, which leads to financial risks.

(VI) Enterprises have a large proportion of credit sales and lack control over accounts receivable. China enterprises generally have unsalable products. In order to increase sales and expand market share, some enterprises sell products on credit, resulting in a large increase in accounts receivable. At the same time, in the process of selling on credit, we don't know enough about the credit rating of customers, and blindly sell on credit, which leads to the loss of control of accounts receivable, and a considerable proportion of accounts receivable can't be recovered for a long time until they become bad debts, and assets are occupied by debtors for a long time, which seriously affects the liquidity and safety of enterprise assets and produces financial risks.

(VII) The enterprise's inventory structure is unreasonable and the inventory turnover rate is not high.

Second, the prevention of corporate financial risks

(A) the basic measures to prevent financial risks of enterprises

1. To prevent financial risks of enterprises, we must treat both the symptoms and the root causes. All enterprises should follow economic laws, establish financial risk awareness, clean up the root causes, comprehensively manage, and take the road of strict management and standardized operation; Establish and improve the restraint mechanism suitable for market requirements, reduce the interference and influence of human factors such as administrative intervention, and create preconditions for enterprises to avoid financial risks.

2, carefully analyze the macro environment of financial management and its changes, improve the adaptability and adaptability of enterprises to changes in financial management environment. Enterprises should carefully analyze and study the ever-changing macro-environment of financial management, grasp its changing trends and laws, formulate various emergency measures, adjust financial management policies in time, change management methods, improve the adaptability and adaptability of enterprises to changes in financial management environment, and reduce financial risks brought to enterprises due to environmental changes.

3. Establish and constantly improve the financial management system to adapt to the ever-changing financial management environment. Facing the ever-changing financial management environment, enterprises should set up efficient financial management institutions, equip high-quality financial management personnel, improve financial management rules and regulations, strengthen the basic work of financial management, make the enterprise financial management system run effectively, and prevent financial risks caused by the financial management system not adapting to environmental changes.

4. Continuously improve the risk awareness of financial managers. Financial risk exists in all aspects of financial management, and mistakes in any one link may bring financial risks to enterprises. Financial managers must keep the awareness of financial risk prevention throughout financial management.

5. Improve the scientific level of financial decision-making and prevent financial risks caused by decision-making mistakes. The correctness of financial decision-making is directly related to the success or failure of financial management. Empirical decision-making and subjective decision-making will greatly increase the possibility of decision-making mistakes. In order to prevent financial risks, enterprises must adopt scientific decision-making methods. In the process of decision-making, we should fully consider all kinds of factors that affect decision-making, try our best to adopt quantitative calculation and analysis methods, and use scientific decision-making models to make decisions. Don't be subjective

6. Straighten out the internal financial relations of the enterprise, so as to unify the responsibilities and rights. In order to guard against financial risks, enterprises must sort out various internal financial relationships. First of all, it is necessary to clarify the position, role and responsibility of each department in enterprise financial management, and give them corresponding rights, so as to truly have clear responsibilities and perform their duties; In addition, in the distribution of benefits, we should give consideration to the interests of all parties in the enterprise, mobilize the enthusiasm of all parties to participate in enterprise financial management, truly unify responsibilities and rights, and make various financial relations within the enterprise clear.

(B) accounting methods to prevent financial risks of enterprises

1, improve corporate financial reporting and improve the quality of accounting information disclosure. The disclosure of accounting information of enterprises, especially listed companies, is an important way for external stakeholders to understand the financial situation of enterprises. The disclosure of untrue accounting information by enterprises may temporarily make external stakeholders make decisions that are beneficial to enterprises. However, once an enterprise obtains funds that it doesn't need for its own development or loans that it can't afford to pay its debts, it will greatly disrupt the normal business order of the enterprise, make the enterprise blindly invest or bear a heavy debt burden, and increase its future financial risks. On the contrary, if an enterprise can disclose real accounting information, it can create a good external financial environment for the enterprise, so that the financial activities of the enterprise can be carried out in a stable state and the financial risks can be reduced.

2, strict laws and regulations of implementation of accounting, strengthen the accounting system constraints. This is mainly aimed at the external market risks of enterprises. Accounting information plays an important role in regulating the allocation of social resources. False accounting information makes the allocation of resources inefficient, which is not conducive to the development of social economy, resulting in the waste of social resources and increasing market risks. As the economic subject in the market, the financial risk level of enterprises is affected by market risk. Creating a stable market environment is very important for enterprises to stabilize financial operation and reduce financial risks.

3. Strengthen the basic accounting work and improve the quality of accounting information. Accounting information is the main basis for enterprise decision makers, and the quality of accounting information has great influence on economic decision-making. False accounting information will not only make decision-makers make a wrong evaluation of previous operating results, but also lead to future decision-making deviating from economic laws and causing huge financial risks to enterprises. Therefore, to improve the quality of accounting information, we should start from the requirements of accounting information users and try our best to meet the requirements of accounting information users inside and outside the enterprise.

4. Improve the accounting control system and strengthen audit supervision. Perfecting accounting control is an important measure to prevent financial risks. Effective accounting control can protect the property safety of enterprises and ensure the reliability of accounting information and the legitimacy of financial activities.

5. The application of robustness. Conservatism is a revision of uncertainty in economic activities. The specific requirement is that the information reflected in the report should not be overly optimistic by choosing a stable accounting treatment method, so as to guide the report users to be cautious when making decisions with this information and prevent decision mistakes. Conservatism is a protective measure taken by accounting information providers to reduce the uncertainty contained in accounting information, which is beneficial for enterprises to avoid or transfer business risks and enhance their competitiveness. Conservatism is very important to enterprises. Although it may be applied freely in practical application, it is widely used in accounting practice because of its function of preventing financial risks.

In short, every enterprise should develop its strengths and circumvent its weaknesses in financial management, establish and improve its internal control system according to its own reality, and dynamically improve its incentive and restraint mechanism, so as to effectively prevent and resolve financial risks, ensure the benign operation of enterprises, improve its ability to resist risks, and maximize its value.