Capital turnover, including accounts receivable, short-term liabilities and so on.
Question 2: What are the principles of financial risk management? Hello, classmate, I'm glad to answer your question!
Financial risk is the possibility that the value of an enterprise changes due to the influence of subjective and objective uncertainties in its financial activities, which makes the financial benefits of all stakeholders deviate from the expected benefits. CFA FRM basic evaluation system
Financial risk management is a process in which enterprises reduce and avoid financial risks or realize financial benefits corresponding to the financial risks they undertake by analyzing and measuring the financial risks they face and adopting financial and non-financial methods and means. Financial risk management has a decisive influence on the economic benefit level and development direction of enterprises. Therefore, enterprises must be guided by certain principles when managing financial risks.
I. Principle of independence
The principle of independence is to have independent institutions and personnel to objectively identify, measure and control the risks existing in the development of enterprises. Independence is the fundamental guarantee of the authority of financial risk management, and it is also the key to restrict financial risk management.
Following the principle of independence, enterprises can establish a three-level management system of general manager (or deputy general manager), risk management committee and supervision department to manage financial risks. Institutions and personnel at all levels should maintain a high degree of independence and authority, and be responsible for monitoring and auditing the financial risk management of enterprises. The general manager (or deputy general manager) is responsible for formulating the enterprise's risk management policy and taking full and final responsibility for risk management. The Risk Management Committee is responsible for assisting the general manager (or deputy general manager) to establish and improve the risk management system, ensuring that the enterprise risk management system meets the needs of enterprise development, formulating enterprise business risk management policies, presiding over the feasibility demonstration of major businesses, and assisting the general manager (or deputy general manager) in his work. Regulatory authorities should be able to exercise their supervisory power independently and submit independent risk management monitoring, evaluation reports and risk management suggestions to the risk management Committee on a regular basis.
Second, the principle of conservatism.
The principle of conservatism is the basic principle followed in accounting, and it is also of guiding significance to financial risk management. The conservatism principle of financial risk management is determined by the uncertainty of financial management environment and the inherent requirement of scientific financial decision-making.
According to the content of enterprise financial activities, financial risks can be divided into financing risk, investment risk, capital recovery risk and income distribution risk. The principle of robustness should run through all kinds of risk management:
(1) The robustness of financing risk management means that managers should be cautious when making debt decisions and capital structure decisions, fully estimate the adverse effects of various uncertain factors on enterprises in the future, and overcome the adverse effects of financing risks.
(2) The soundness of investment risk management means that managers have enough knowledge and expected psychological endurance to cope with future risks and losses, fully understand various factors affecting investment income and expenditure, avoid blind optimism and adventurism, and avoid or reduce investment risks as much as possible.
(3) The robustness of risk management of capital recovery is to set strict credit standards for customers when making risk decisions about capital recovery, fully estimate the risks and losses brought by credit sales orders to enterprises, and seek the best points for credit sales decisions and capital recovery risks.
(4) The robustness of income distribution risk management is that decision makers should grasp the best distribution ratio that conforms to the interests of investors and the long-term interests of enterprises, and overcome the harm caused by short-term behaviors such as excessive profit distribution to enterprises.
Third, the principle of balance.
The principle of equilibrium means that when investors are faced with risky projects, they should weigh the risks and benefits. When the degree of risk increases, they should raise the benefits to a balanced level, which is enough to make the expected utility equal to the original utility. The principle of balance is the basic principle for managers to deal with risks and benefits, and it is also the general rule of risk management.
The principle of equilibrium is determined by the dual characteristics of purity and economy of financial risks. Purity means that the uncertain results of future financial activities will bring adverse effects to people, which is the natural state of risk. Economy refers to the use of the uncertain characteristics of event results, scientific management, in order to obtain benefits. It is the social state of risk and the product of the expectation of future income brought by subjective uncertainty. Purity determines that financial risk is the internal obstacle for enterprises to obtain income, and economics shows that financial risk creates external conditions for enterprises to obtain excess income. The relationship between risk and return is not a problem of completely abandoning an element, but a problem of degree choice between the two, that is, a collocation problem. In risk management, we should follow the premise of "seeking benefits from risks", so that risks and benefits are coordinated and balanced, and the expected utility is equal to the original utility.
Fourth, the principle of timeliness.
Timeliness >>
Question 3: The main benefits of financial risk management Financial risk management is a process of dealing with uncertainties from financial markets. The benefits of financial risk management include: (1) improving financial planning and management, which is the core of corporate governance; (2) assist in making more reasonable investment decisions; (3) Providing information for hedging decision; (4) Continuously monitor the market and economy to provide information for decision-making; (5) Promote the implementation of due diligence when outsourcing and dealing with competitors. Note 1. Establishing a sound financial risk management depends on many factors. 2. Financial risk management strategies usually involve derivatives. 3. Financial risk management is a continuous process, which can be summarized as: determining major financial risks and their priorities, determining appropriate risk tolerance, implementing risk management strategies according to policies, and measuring, reporting, monitoring and improving when necessary.
Question 4: Risk management and financial risk management have different concepts.
Financial risk management is a branch of risk management, a special management function and a new management science developed on the basis of previous risk management experience and modern scientific and technological achievements. Financial risk management refers to the identification, measurement, analysis and evaluation of various risks existing in the financial management process of business entities. And take timely and effective measures to prevent and control, and deal with it in an economic, reasonable and feasible way to ensure the safe and normal development of financial management activities and ensure that their own economic interests are not lost.
The definition of risk management is the same as that of risk, and academic circles at home and abroad have different views. Traditionally, risk management is one of the six management functions of enterprises. This view comes from the famous French management theorist Henry? Henri fayol. In his book General and Industrial Revolution published by 1949, Fei Yao believes that risk management is one of the basic activities of enterprises. However, the scope of "safety activities" in Fei Yao's book is far smaller than the current "risk management activities". American risk management scientist Gleason emphasized the importance of risk management to an enterprise as an organization in his book Financial Risk Management, and summarized the contents of risk management into the following three aspects:
(1) accurately and timely measure all risks faced by enterprises;
(2) Establish a process to analyze how to evaluate the total risk of an enterprise within the scope of production and operation;
(3) Establish a department responsible for risk management within the enterprise to control enterprise risks and deal with losses caused by enterprise risks.
65438-0964 American risk management experts Williams and Hans clearly put forward five elements of enterprise risk management in their book Risk Management and Insurance. It is believed that although the risk management operations of different enterprises may be very different, they all have the same determinants. These same risk management elements are: the determination of enterprise risk tasks; Evaluation of enterprise risks and uncertainties; Enterprise risk control; Enterprise risk financing; Information feedback of enterprise risk management.
Felix, a famous risk management consultant? HFelixKloman and Jovi? YacovYHaimes also put forward his own explanation of the elements of enterprise risk management. The view that enterprise risk management elements are based on the structure of enterprise as a "system". This view holds that the enterprise risk management process can be regarded as an information system, which is an important theoretical basis for applying modern scientific theories and technologies such as system theory, cybernetics and information technology to the enterprise risk management process. The general understanding in China's theoretical circles is that corporate risk management is regarded as a scientific management process in which all economic entities identify, measure and analyze risks, and take appropriate measures to prevent and control risks on this basis, and comprehensively deal with risks by reasonable and economic means, so as to maximize protection.
Question 5: What are the main financial risk management of enterprises? First, set up a crisis management team. Any unexpected disaster will hurt or damage the life and health of employees and the property of the company. If you are insured with full labor insurance, health insurance, group average insurance (PICC) and fire insurance (property insurance) at ordinary times, you can get full claims when the disaster comes, thus reducing or exempting the company's losses. 2. Take out full insurance. Any unexpected disaster will hurt or damage the life and health of employees and the property of the company. If you are insured with full labor insurance, health insurance, group average insurance (PICC) and fire insurance (property insurance) at ordinary times, you can get full claims when the disaster comes, thus reducing or exempting the company's losses. Third, set up a balance point as a basis for weighing. When enterprises conduct foreign exchange operations with reference to foreign exchange judgment indicators, it is inevitable that they will lose and win. How to avoid too much loss can be based on the balance point of exchange difference and spread. Four. Effective internal control Internal control has two main functions, one is to prevent fraud; The second is to increase revenue and reduce expenditure and reduce costs. We often see that although enterprises have made proud achievements, they have financial problems, production and sales are out of control, manpower supply is insufficient, or the payment for goods cannot be recovered, which leads to business crisis. The scope of internal control covers seven trading cycles: sales and collection, procurement and payment, production, wages, financing, fixed assets and investment. 5. Make financial planning in advance. Small and medium-sized enterprises generally lack their own funds, and it is difficult to obtain bank financing without collateral, so they often have to borrow usury from the underground. This usury has not only eroded profits, but also caused serious consequences, which is really not worth the candle. Therefore, a sound financial planning is necessary. Enterprises should basically prepare accurate cash budgets on a regular basis, so that they can know when they need funds, foreign exchange and how much they need, and they can find ways to raise them in advance when funds are insufficient. 6. Review the difference between the budget and the actual situation regularly. Regular review activities are usually called variance analysis and discussion. In terms of finance, the items that the enterprise reviews every month are: (1) fund scheduling results; (two) the compliance rate of the capital cost reduction plan; (3) Interest payment rate; (four) the financial profits generated by the use of funds. Seven, the establishment of profit centers and responsibility centers to truly assess the personal performance within the enterprise (which products make money) and the attribution of departmental contributions (which departments make money). Eight, less financial products with high operational risks Recently emerging derivative financial products include foreign currency futures, interest rate selection, exchange rate exchange, forward interest rate agreements, etc. , can be said to be dazzling. Because of the high risk of these commodities, if an enterprise proposes to operate derivative financial products with limited funds, it must formulate perfect risk management procedures, strengthen internal control, and clearly standardize the operating quota of financial personnel. However, the most fundamental way is to touch less. 9. Be cautious about investing outside the industry. 10. Don't endorse and guarantee others at will, only the disadvantages are not good. If it is necessary to guarantee each other for the same industry, the amount of guarantee should be equal, and the maximum amount should not exceed half of the capital, so as not to drag down the industry. XI。 Drafting and evaluating the plant construction plan Generally speaking, major capital expenditures require a lot of money. If the expected benefits are not produced when it is completed, the enterprise will suffer huge losses. Therefore, before investing in building a factory, we must first make a rigorous plan for building a factory and evaluate the investment recovery, so as to avoid the situation that the capital turnover is ineffective due to variables such as excessive investment or trial operation. It is best to get the bank's commitment and loan before building a factory, and then carry out the factory building work. In short, in the process of growth, enterprises should first pay attention to cash security, then seek surplus and finally seek development in stability.
Question 6: There are many references about financial risk management.
Li Sheng. Research on comprehensive financial risk management [D]. Xiangtan University: Xiangtan University, 2005.
[2] Li Chunyuan. How to strengthen enterprise financial risk control [J]. Value Engineering, 20 10, (32).
[3] Yan Feng. Research on financial risk management of non-profit organizations [D]. Southwestern University of Finance and Economics: Southwestern University of Finance and Economics, 2007.
[4] Li Hongmei. Research on the Overall Risk Management of China Commercial Banks [D]. Liaoning University: Liaoning University, 20 10.
[5] Xie Ning. Research on the financial model of modern banks under the framework of comprehensive risk management [D]. Southwestern University of Finance and Economics: Southwestern University of Finance and Economics, 20 10.
[6] Peng Gan. Study on Risk Management of Credit Guarantee Institutions for SMEs in Gansu Province [D]. Lanzhou University: Lanzhou University, 2008.
[7] Ding Yushu. Research on risk management in enterprise financial activities [D]. Jilin University: Jilin University, 2004.
[8] Li Yande. A Study on College Students' Risk Management [D]. Dalian Maritime University: Dalian Maritime University, 20 10.
Jing Yonghong. Study on risk management of the first phase of comprehensive development of Cuiping Mountain in Dazhou [D]. Southwest Jiaotong University: Southwest Jiaotong University, 2009.
Yan Feng. Excellent? Study on Risk Management of Azure Islands Development Project [D]. China Ocean University: China Ocean University, 2008.
[1 1] Du Xiaoling. Research on internal control based on risk management [D]. Southwestern University of Finance and Economics: Southwestern University of Finance and Economics, 2008.
[12] Wang Xiaolian. Research on Financial Risk Management of Shipping Enterprises [D]. Shanghai Maritime University: Shanghai Maritime University, 2005.
Yang Qiuli. On RAROC[D], the core method of comprehensive risk management of banks. University of international business and economics: university of international business and economics, 2006.
Xu Juan. Research on risks in financial management of multinational corporations [D]. Capital university of economics and business: capital university of economics and business, 2005.
[15] Zhang Xingwen. Research on financial risk management of group companies [D]. Guangxi University: Guangxi University, 2007.
Wang Yuxian. A new branch of enterprise management-risk management [J]. Managing the world, 1985, (3).
[17] Li Li. Research on comprehensive audit risk management [D]. Xiangtan University: Xiangtan University, 2005.
[18] Cao Shengyuan. Research on financial risk management in colleges and universities [D]. Central South University: Central South University, 2008.
[19] Gong Yongbing. Research on Risk Management of TA Insurance Co., Ltd. Guangxi Branch [D]. Guangxi University: Guangxi University, 2006.
[20] Zhang Zichao. Research on Risk Management of Finance Company of China Enterprise Group [D]. Wuhan University of Science and Technology: Wuhan University of Science and Technology, 2008.
[2 1] Party Snow. On the financial risk management and strategy of insurance companies [D]. Southwestern University of Finance and Economics: Southwestern University of Finance and Economics, 2003.
[22] Wang Zhongyu. Internal risk management analysis and internal risk assessment of Xinhua Securities Company [D]. Jilin University: Jilin University, 2005.
[23] Li Hongxia. Risk management of enterprise tax planning [D]. Capital university of economics and business: capital university of economics and business, 2006.
[24] Research on Risk Management of Shandong Branch of China Agricultural Development Bank [A]. Editor-in-Chief Li Yaxin. C。 China Financial and Economic Press, 2005:70-7 1.
[25] Guo Jingyang. Research on establishing a comprehensive risk management framework for insurance companies [D]. University of international business and economics: university of international business and economics, 2002.
[26] Gao Jun. Modern enterprise risk management process analysis and countermeasures [D]. Southwest Petroleum Institute: Southwest Petroleum Institute, 2003.
[27] Fan Yun. Research on Risk Management of Private Real Estate Equity Investment Fund [D]. Southwestern University of Finance and Economics: Southwestern University of Finance and Economics, 2009.
[28] Cao. M&A Financial Risk Management [D]. Xiamen University: Xiamen University, 2007.
[29] Xie Fei. Research on the role and risk management of online banking of financial companies in the internal resource allocation of enterprise groups [D]. Wuhan University: Wuhan University, 2005.
[30] Finance and Risk Management of Wuhan Branch of Bank of Communications [a]...[c] ... Hubei People's Bank >>
Question 7: What does the financial risk control system include? Are you writing a paper?
What are the financial risks in financial risk control? In view of these risks, specific control measures or countermeasures are put forward.
Financial risk control includes a series of activities such as risk identification, risk estimation, risk control and risk monitoring. Among them, risk identification, risk prediction and risk treatment are the core of financial risk control.
System construction includes: establishing a standardized accounting system; Construct a perfect institutional foundation system; Build a refined financial analysis system and control system, and establish a long-term risk early warning mechanism.
Risk treatment methods include: risk prevention, risk avoidance, risk retention, risk transfer and so on.
Your topic is too big. I wonder what's the point. If you are writing a paper, it is suggested to narrow down the topic, concentrate it and find a starting point, so that the analysis can be thorough and the ideas can be creative.
Maybe this is not the answer, you can express it.
Question 8: How to strengthen enterprise financial risk management? How to prevent and resolve financial risks in order to achieve financial management objectives is the focus of enterprise financial management. The author believes that the following work should be done to prevent financial risks of enterprises.
(A) the establishment of enterprise financial risk identification system
To guard against the financial risks of enterprises, we must first identify the financial risks of enterprises accurately and timely. Generally speaking, the following methods can be used to identify the financial risks of enterprises.
1.
The early warning system is established by "arman" model. This method was invented by Edward of America. In 1960s, Arman put forward a financial early warning system based on multivariate discriminant model. He used stepwise multivariate discriminant analysis to gradually extract five financial ratios with the most predictive ability, and established a Z-scoring model similar to the regression equation:
z = 0.0 12x 1+0.0 14x 2+0.033 x3×0.006 x4+0.999 X5
Where: X 1 = working capital/total assets; X2 = retained earnings/total assets; X3 = earnings before interest and tax/total assets; X4 = total market value of common shares and preferred shares/total book value of liabilities; X5 = sales revenue/total assets.
In fact, the model organically links the indicators reflecting the solvency, profitability and operational capacity of enterprises with a multivariate linear function formula through five variables (five financial ratios) to comprehensively evaluate the possibility of financial risks of enterprises. Arman believes that if the z value is less than 1.8 1, the enterprise has great financial risks; If the z value is within the gray * * * domain of 1.8 1-2.99, the financial status of the enterprise is unknown; If the z value is greater than 3, it shows that the enterprise is in good financial condition and the possibility of financial risk is very small. Arman also put forward that z value equal to 1.8 1 is the critical value to judge enterprise bankruptcy.
2.
Forecast and monitor the deterioration trend of a single financial risk indicator. Usually, according to the nature of financial ratio indicators and the ability to comprehensively reflect the financial situation of enterprises, the ratio of enterprise financial risk early warning mainly includes: (1) the ratio of cash to total liabilities. It is equal to net operating cash flow divided by total liabilities. The higher the ratio, the stronger the ability of enterprises to bear debts. (2) current ratio. It is the ratio of current assets to current liabilities. It is generally believed that the current ratio should be above 2, but not lower than 1. The main factors affecting the current ratio are business cycle, the amount of accounts receivable in current assets and the turnover rate of inventory. (3) Net interest rate of assets. Equal to net profit divided by total assets. It compares the net profit of an enterprise in a certain period with the assets of the enterprise, and shows the comprehensive effect of the utilization of the assets of the enterprise. The higher the index, the better the efficiency of asset utilization, indicating that enterprises have achieved good results in increasing income and reducing expenditure. Otherwise, the situation is just the opposite. At the same time, the net interest rate of assets is a comprehensive index. The assets of an enterprise are formed by investors' investment or borrowing, and the net profit is closely related to the assets, asset structure and management level of the enterprise. The main factors affecting the net interest rate of assets are: the price of products, the level of unit cost, the production and sales volume of products, and the amount of capital occupied. (4) Asset-liability ratio. It is the ratio of total liabilities to total assets. It is mainly used to measure the ability of enterprises to use liabilities for business activities and reflect the degree of protection of enterprises to creditors' capital investment. Under normal circumstances, the ratio should be low, but when the business prospects of enterprises are optimistic, the asset-liability ratio can be appropriately increased to obtain the benefits brought by debt management; If the enterprise has a bad prospect, it should reduce the asset-liability ratio, thus reducing financial risks. (5) Asset safety rate. It is the difference between the asset realization rate and the asset-liability ratio, in which the asset realization rate is the ratio of the expected asset realization amount to the asset book value. It is mainly used to measure the residual coefficient after the total assets of an enterprise are realized and the debts are repaid. The greater the coefficient, the safer the assets and the smaller the financial risk; Otherwise, the situation is just the opposite.
Enterprises can use comparison and ratio analysis to examine the changing trend of their own financial ratio indicators over the years, and use the average value of industry indicators and the index value of advanced enterprises for reference to judge their own financial situation, so as to effectively avoid risks, control risks, delay crises or even put an end to them.
3.
Prepare cash flow budget. The preparation of enterprise cash flow budget is a particularly important part of financial management. Since the object of corporate finance is cash and its flow, in the short term, whether an enterprise can survive depends not entirely on whether it is profitable, but on whether it has enough cash for various expenses. ......& gt& gt
Question 9: How do enterprises manage financial risks? 1. Set up a crisis management team. Any unexpected disaster will hurt or damage the life and health of employees and the property of the company. If you are insured with full labor insurance, health insurance, group average insurance (PICC) and fire insurance (property insurance) at ordinary times, you can get full claims when the disaster comes, thus reducing or exempting the company's losses. 2. Take out full insurance. Any unexpected disaster will hurt or damage the life and health of employees and the property of the company. If you are insured with full labor insurance, health insurance, group average insurance (PICC) and fire insurance (property insurance) at ordinary times, you can get full claims when the disaster comes, thus reducing or exempting the company's losses. Third, set up a balance point as a basis for weighing. When enterprises conduct foreign exchange operations with reference to foreign exchange judgment indicators, it is inevitable that they will lose and win. How to avoid too much loss can be based on the balance point of exchange difference and spread. Four. Effective internal control Internal control has two main functions, one is to prevent fraud; The second is to increase revenue and reduce expenditure and reduce costs. We often see that although enterprises have made proud achievements, they have financial problems, production and sales are out of control, manpower supply is insufficient, or the payment for goods cannot be recovered, which leads to business crisis. The scope of internal control covers seven trading cycles: sales and collection, procurement and payment, production, wages, financing, fixed assets and investment. 5. Make financial planning in advance. Small and medium-sized enterprises generally lack their own funds, and it is difficult to obtain bank financing without collateral, so they often have to borrow usury from the underground. This usury has not only eroded profits, but also caused serious consequences, which is really not worth the candle. Therefore, a sound financial planning is necessary. Enterprises should basically prepare accurate cash budgets on a regular basis, so that they can know when they need funds, foreign exchange and how much they need, and they can find ways to raise them in advance when funds are insufficient. 6. Regularly review the difference between the budget and the actual situation. Regular review activities are usually called variance analysis meetings. In terms of finance, the items that the enterprise reviews every month are: (1) fund scheduling results; (two) the compliance rate of the capital cost reduction plan; (3) Interest payment rate; (four) the financial profits generated by the use of funds. Seven, the establishment of profit centers and responsibility centers to truly assess the personal performance within the enterprise (which products make money) and the attribution of departmental contributions (which departments make money). Eight, less financial products with high operational risks Recently emerging derivative financial products include foreign currency futures, interest rate selection, exchange rate exchange, forward interest rate agreements, etc. , can be said to be dazzling. Because of the high risk of these commodities, if an enterprise proposes to operate derivative financial products with limited funds, it must formulate perfect risk management procedures, strengthen internal control, and clearly standardize the operating quota of financial personnel. However, the most fundamental way is to touch less. 9. Be cautious about investing outside the industry. 10. Don't endorse and guarantee others at will, only the disadvantages are not good. If it is necessary to guarantee each other for the same industry, the amount of guarantee should be equal, and the maximum amount should not exceed half of the capital, so as not to drag down the industry. XI。 Drafting and evaluating the plant construction plan Generally speaking, major capital expenditures require a lot of money. If the expected benefits are not produced when it is completed, the enterprise will suffer huge losses. Therefore, before investing in building a factory, we must first make a rigorous plan for building a factory and evaluate the investment recovery, so as to avoid the situation that the capital turnover is ineffective due to variables such as excessive investment or trial operation. It is best to get the bank's commitment and loan before building a factory, and then carry out the factory building work. In short, in the process of growth, enterprises should first pay attention to cash security, then seek surplus and finally seek development in stability.
Question 10: What is the difference between financial risk control and financial risk management? Risk control is an internal aspect of risk management.
Generally speaking, financial risk management includes risk identification, risk estimation and risk control. Firstly, identify the risk source according to the actual situation, then quantify the risk, and finally consider what measures (costs) to control the risk to a minimum.