How to avoid business risks?

Risk prevention and control in modern enterprises As market competition becomes increasingly fierce, risks have an increasing impact on the survival and development of enterprises. Modern enterprises must fully understand the causes of financial risks and establish and improve risk control mechanisms. , prevent and resolve various financial risks in the development of enterprises, and ensure that enterprises develop in a reasonable, scientific and healthy direction. Risk Prevention Risk refers to the possibility that an enterprise will not be able to achieve expected financial returns due to a variety of factors, resulting in losses. Financial risk is an inevitable product of modern enterprises facing market competition, and its existence will have a significant impact on enterprise production and operations. Therefore, how to objectively analyze and understand financial risks and take various measures to control and avoid the occurrence of financial risks is of great significance to the survival and development of modern enterprises. 2. Prevention and control of financial risks in modern enterprises 1. Improve the financial management system to adapt to the changing financial management environment. Although the macro-environment of financial management exists objectively outside the enterprise and the enterprise cannot influence or control it, it does not mean that the enterprise is powerless in the face of environmental changes. First of all, enterprises should carefully analyze the changing financial management macro-environment, grasp its changing trends and patterns, and formulate a variety of contingency measures, timely adjust financial management policies, and change financial management methods, thereby improving the enterprise's ability to adapt to changes in the financial management environment. and adaptability to reduce and avoid financial risks brought to enterprises by environmental changes. Secondly, in the face of the ever-changing financial management environment, the financial management system should keep pace with the times and be constantly updated and improved. Enterprises should set up reasonable and efficient financial management institutions, equip them with high-quality financial management personnel, improve financial management rules and regulations, strengthen various basic tasks of financial management, and enable the enterprise's financial management system to operate efficiently to prevent the financial management system from not adapting to the situation. Financial risks arising from environmental changes. 2． Strengthen the awareness of financial risk prevention and establish a correct concept of financial risks. In the fierce competition in the market economy, establishing a risk awareness, being brave enough to take on risks and being good at spreading risks are the keys to the success of modern enterprises. Therefore, modern enterprises must establish a correct concept of financial risks, abide by the principle of risk-return balance, and cannot only focus on returns without considering the possibility of losses. All departments and personnel of the enterprise, especially the decision-making management department and financial management personnel of the enterprise, must enhance their awareness of risk prevention and infiltrate the awareness of risk prevention into all aspects of financial management work. Financial management personnel must have solid professional accounting knowledge and have the ability to collect, organize and analyze financial information; they must have the ability to make sensitive and accurate professional judgments about financial risks, estimate and discover potential financial risks promptly and accurately, and Able to judge risks in specific environments and propose solutions. 3. Improve the scientific level of financial decision-making. The correctness of financial decisions is directly related to the success or failure of financial management. In the decision-making process, various factors that affect decision-making should be fully considered, quantitative calculation and analysis methods should be adopted, and scientific decision-making models should be used. Make decisions. For example, in financing decisions, enterprises should reasonably predict the amount of funds required based on production and operation conditions, and then select the correct financing method and determine a reasonable capital structure through calculation and analysis of capital costs and risk analysis of various financing methods. Make correct financing decisions on the basis to reduce financing costs and reduce financial risks. In investment decisions, enterprises must adhere to the efficiency-centered investment principle, use funds in a unified manner, make the allocation of capital investment more reasonable, and avoid both excessive dispersion and excessive concentration. At the same time, investment projects are comprehensively analyzed and evaluated through indicators such as investment payback period, investment return rate, net present value and internal rate of return, so as to avoid financial risks caused by financial decision-making errors. 4. Strengthen the internal management of enterprises and straighten out the internal financial relationships of enterprises. Strengthen the internal management of enterprises, adjust the structure of funds and assets, reduce and reduce the unreasonable occupation of funds, and improve the efficiency and turnover speed of funds. It is necessary to reasonably determine the proportional relationship between debt funds and own funds, short-term funds and long-term funds, and change with the changes in enterprise production, and it is always in a dynamic management process. It is necessary to strengthen the risk prevention and control of accounts receivable, establish a scientific and systematic accounts receivable system, pay attention to assessing the financial status and credit status of customers, carefully sign contracts, regularly analyze the aging of accounts, and closely track accounts receivable. The repayment situation, reasonable formulation of collection policies, control risks, and reduce bad debt losses. For inventory, the total cost of inventory can be reached to the lowest level while ensuring smooth production and sales. In actual work, we can investigate and summarize existing experience, and use the optimal order quantity model in inventory management to... >>

How can companies avoid operational risks

< p> Improve the financial management system to adapt to the ever-changing financial management environment. Although the macro-environment of financial management exists objectively outside the enterprise and the enterprise cannot influence or control it, it does not mean that the enterprise is powerless in the face of environmental changes. .

Strengthen awareness of financial risk prevention and establish a correct concept of financial risk. In the fierce competition in the market economy, establishing risk awareness, being brave enough to take on risks and being good at diversifying risks are the keys to the success of modern enterprises.

Improve the scientific level of financial decision-making. The correctness of financial decisions is directly related to the success or failure of financial management. In the decision-making process, various factors that affect decision-making should be fully considered and quantitative calculation and analysis methods should be used. , and use scientific decision-making models to make decisions.

Strengthen the internal management of the enterprise and straighten out the internal financial relations of the enterprise. Strengthen the internal management of the enterprise, adjust the fund and asset structure, reduce and reduce the unreasonable occupation of funds, and improve the efficiency and turnover speed of funds.

Reasonable use of technical methods to prevent risks Modern enterprises can use a variety of methods to prevent and avoid financial risks.

Establish an effective financial risk prevention mechanism. Enterprises should be based on the market and establish an effective risk prevention and avoidance mechanism.

How to reduce business operating risks

1. What is business operating risk

Business operating risk refers to the dangers that may occur during the business management process. Enterprise operating risks usually mainly include the following five types:

1. Policy risk: refers to the impact of changes in national policies on industries and products (macroeconomic regulation and industrial policy orientation)

2. Market risk: refers to whether the company's products are marketable in the market and whether it has market competitiveness (technology, quality, service, sales channels and methods, etc.)

3. Financial risk: refers to Due to poor management, the company has difficulty in capital turnover, or even goes bankrupt (capital structure, asset-liability ratio, receivables and payables, cash flow problems, etc.)

4. Legal risk: due to improper signing of the contract Be careful and fall into a contract trap, causing serious economic losses to the company (breach of contract, fraud, intellectual property infringement)

5. Team risk: refers to core team problems, employee conflicts, loss, and knowledge management issues.

Recommendation: In the process of business operations, firmly establish risk awareness and take preventive measures to prevent business risks to the greatest extent.

2. How to control corporate business risks

1. Establish and improve various corporate rules and regulations, especially the establishment of contract management systems, financial management systems and intellectual property protection systems

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2. Strengthen customer credit management. The main purpose is to establish customer files and understand the customer's credit status.

3. Carefully sign and review various contracts signed by the enterprise externally, and strengthen control and supervision over the performance of the contracts. 3. Basic methods to avoid business operation risks

Business operations are risky, but risks and opportunities coexist. The greater the risk, the more opportunities there may be. Because of this, many leaders know that there are tigers in the mountains and prefer to go there.

A good rational leader should not avoid risks, but should try to reduce risks as much as possible and actively prevent risks in business activities.

1. Learn to analyze risks

In the market economy, it can be said that there are risks everywhere in business activities, including investment risks, financing risks, and operation risks. As a business operator, We must learn to analyze risks in every aspect of our operations. We must always leave room for everything we do. Have a clear understanding of possible risks and have plans to overcome various possible risks.

2. Be good at assessing risks

Be able to predict the possible negative impacts of risks through analysis.

For example, how much loss can be caused if an investment goes wrong? If the financing amount expires and cannot be recovered, how much economic loss may be caused? Once the payment cannot be collected and the inventory is overstocked, how much impact will it have on the turnover of working capital? A bad cycle of capital turnover (cash flow) may cause harm and expected consequences to normal operating activities.

3. Actively prevent risks

To prevent risks, we must take active countermeasures, such as objective evaluation of investment plans, thorough and detailed investigation of the market, and formulation of reasonable management systems. , ensure a virtuous cycle of circulating capital and master scientific decision-making procedures and methods.

Once a problem occurs in a certain link, we must look at the entire system. Take remedial measures to limit the spread of negative impacts.

4. Avoid and transfer risks

Risks are inevitable, but risks can also be transferred.

For example: insuring property is a transfer of investment accident risks; purchasing goods on credit is a transfer of financing risks, and leasing instead of purchasing equipment is a transfer of investment risks.

As long as it is applied appropriately, the company's risks can indeed be reduced to a minimum.

How construction companies avoid business risks

With the deepening of the marketization process of my country's construction industry and the continuous development and growth of the industry, some companies have shown that they are incompatible with marketization. , some businesses have been unable to carry out normal business activities and have lost their ability to compete in the market. This is the result of risk factors in the business process. In the current situation where the construction market is not very standardized and the mechanism needs to be improved, it is particularly important for construction industry companies to improve their ability to withstand and resist construction risks in the market.

Therefore, objectively analyzing the market, establishing scientific market analysis and early warning mechanisms, rationally resolving risks in a targeted manner, and constantly exploring effective ways and measures to prevent, control, and transfer business risks have become our top priorities. Establish a complete construction project risk management mechanism. Construction risks include construction delays, cost overruns, construction quality not meeting the original standards, and project abortion midway. The core of risk management is to use economic and legal means to reasonably allocate risks and effectively control risks. Therefore, enterprises should follow the laws of market economy, use legal and economic means to guide and regulate project risk management, and try to avoid administrative intervention. At the same time, it should also be noted that engineering risk management is still a new thing in our country, and the construction engineering risk management system has not yet been established. The legal system for construction safety management should be improved as soon as possible, accident insurance should be promoted in accordance with the law, and the construction project risk management system should be actively cultivated. Build a construction project risk management model that is both suitable for my country's national conditions and in line with international practices. Establish a credit mechanism, improve supervision and management of abiding by contracts, keeping promises, benefiting from trustworthiness, and being punished for breach of trust, so as to promote dialogue between owners and contractors on an equal footing. At the same time, while improving the owner's inspection of the contractor, we should establish and improve the contractor's inspection system of the owner, and use credit guarantees and interest constraints to establish an intrinsic motivation mechanism of keeping promises, stressing credibility, and valuing trustworthiness, so as to strengthen the construction market The subject's ability to self-discipline and self-supervise, while establishing a market mechanism for survival of the fittest, using market economy methods to regulate the behavior of all parties in project construction, and forming an effective regulatory mechanism and guarantee system. Use credit guarantee methods to realize the connection between project construction entities and form a chain of joint and several responsibilities to ensure the legitimate rights and interests of all parties involved in project construction, improve and improve an open and competitive construction market, and promote the bidding system and quality Ensure the healthy and orderly operation of the system. Standardizing Capital Operations and Ensuring Safe Asset Operations With the development of the market economy, the buyer, that is, the construction unit, increasingly dominates the market, and the problem of construction companies advancing funds has not been well resolved. Continuously broadening financing channels and establishing a strong financial support system have become industry-wide common sense and are the key to the survival of enterprises. An important part of this is how to achieve good capital operation behavior and ensure the successful operation of engineering projects. The source of benefits for construction companies lies in the project department. If the project does not make money, the company will have no benefits. This requires both the company and the project department to keep "cash flow" uninterrupted. Once the source of "cash flow" becomes In the desert, it is not far away that the "capital chain" of enterprises will be interrupted. Closely contact the market and accelerate the informatization process. The development of the construction industry is inseparable from market information. To develop and grow, the construction industry must adopt a distinctive approach that is dominated by professional teams, operated in an information-based manner, promoted by large-scale groups, and implemented in concrete ways. development path. Only by forming a scale effect of information, assets, manpower, and material resources can development achieve a qualitative leap. It is particularly important for construction industry enterprises to fully grasp and utilize market information. Enterprises must keep abreast of external information and, based on changes in market supply and demand, selectively carry out business activities through multiple channels and in an all-round way. Not only can they vigorously carry out cooperative operations, subcontract construction, and cooperate with construction, but they can also effectively ensure economies of scale and good performance. income. At the same time, by timely grasping the country's new policies and new trends, linking with technological progress, improving the level of specialization, and strengthening the optimal allocation of resources, it is also an effective way to maximize the benefits of economies of scale and achieve risk transfer and control. Optimizing resource allocation, rationally allocating and transferring risks, deepening reform, adjusting scale, optimizing structure, and improving the development quality of the entire industry are urgent tasks for the current development of the construction industry. Enterprises can explore and develop economies of scale, continue to accelerate the marketization process of professional markets by doing a good job in their main business, implement the construction industry in a physical way, and actively extend and penetrate into other fields to develop economies of scale, and gradually develop the construction industry into a capital, A technology- and talent-intensive comprehensive industry. In addition, my country's construction industry has a relatively obvious comparative advantage in labor costs...>>

How to avoid corporate risks

Successful companies have their own unique reasons , but business failure is usually due to the failure to avoid corporate risks. From this point of view, it is very necessary to establish a unique risk defense system of the enterprise and do a good job in risk prevention. As we all know, enterprises will face various risks in the course of business operations, but here today, as legal practitioners, we will only give you a basic introduction to the legal risks that enterprises face. In the following introduction, we try to bring together all the legal risk items that an enterprise may face. We hope to be able to enlighten your enterprise so that your enterprise can establish a legal risk prevention system suitable for its own actual situation!

Everyone may know the "barrel theory". What we want to say here is that now the "barrel theory" has new developments. The new "barrel theory" tells us that a wooden barrel The water storage capacity of a bucket does not depend on the longest board but on the gap between the boards. In other words, no matter how big a wooden bucket is and how much water it can hold, if the gaps between the boards are large, it will not be able to hold a lot of water because too much will leak out. Legal disputes are like gaps between barrels. The more disputes there are, the more water is leaked. Although a company seems to be very profitable, a few legal disputes may lead to it being on the verge of bankruptcy.

As for the costs of legal disputes, we have introduced them before, and they can basically be divided into: economic costs, time costs, risk costs, and reputation costs. In other words, when a dispute occurs, we often need to spend more time and energy to resolve it, but the result will not be ideal. Because the best time to deal with it has been missed. Therefore, we often say: Legal risks must be prevented first, and remediation until a dispute occurs is often just a matter of making up for it, and it is too late!

(1) Enterprise property rights risks

Clear property rights are the basis for the survival and development of enterprises, but in China, too many enterprises are entangled in property rights issues. In judicial practice, there are many entrepreneurs who suffer in this regard. This is mainly due to my country's public ownership policy in the last century, which has led to the absence or invisible absence of other ownership capital. Although the non-public economy was later introduced, its long-term uncertainty caused investors to worry and distrust the policy. In this state, some "red hat" companies have emerged. This seemed to be the most rational choice at the time, but it laid hidden dangers for subsequent property rights disputes. Even for enterprises that later emerged as private enterprises, since most of them were cooperations with friends, relatives and even family members, out of family and friendship considerations, and relatively weak legal awareness, the property rights agreement of the enterprise was not Being too clear often leads to disputes in the future. In short, there are many kinds of property rights disputes, and different disputes have their own characteristics. However, no matter what kind of property rights disputes, the impact on enterprises is huge, even devastating, so this issue is the first priority for enterprises to consider and solve. question.

(2) Contract legal risks

As contracts are widely used, contract disputes are also common, and contract disputes are a high occurrence in judicial practice. dispute. It should be said that contracts are an indispensable part of the business process. From the purchase of office supplies to the mergers, divisions, acquisitions, etc. of enterprises, contracts are everywhere, so business leaders have to consider how to sign a contract. A strict contract! However, researching contracts has never been the task of entrepreneurs. Based on our own experience and previous failure cases in contracts, our lawyers have summarized a relatively complete contract risk prevention system. We believe it will help your company's contract matters. Norms help. Of course, we suggest that the contract ultimately needs to be checked by professionals, such as lawyers.

(3) Enterprise labor relations

Chinese enterprises seem to be relatively lucky because they do not have to face labor negotiations or the threat of corruption as often as foreign enterprises. However, Chinese enterprises, However, they have to face many problems such as low efficiency and inactivity of employees, collective job-hopping, leakage of corporate trade secrets, etc. Therefore, how to better avoid labor disputes has always been a very difficult problem that Chinese companies must face. From a legal perspective, it is very necessary for an enterprise to sign a complete labor contract. Of course, at the same time, the enterprise also needs to bear corresponding obligations. Economists tell us that shareholders of a company cannot do everything personally and should entrust most matters to others; economists also tell us that there are agency costs when agents manage companies... .>>

How to reduce enterprise business risks

Enterprise business risks refer to the dangers that may occur during the operation and management of enterprises. Enterprise operating risks usually mainly include the following five types: 1. Policy risk: refers to the impact of changes in national policies on industries and products (macroeconomic regulation and industrial policy orientation) 2. Market risk: refers to whether the company's products are successful in the market Marketability, market competitiveness (technology, quality, service, sales channels and methods, etc.) 3. Financial risk: refers to the difficulty in capital turnover or even bankruptcy due to poor management of the enterprise (capital structure, asset-liability ratio, etc.) , accounts receivable and payables and cash flow problems, etc.) 4. Legal risk: It is due to careless signing of the contract and falling into the contract trap, causing serious economic losses to the enterprise (breach of contract, fraud, intellectual property infringement) 5. Team risk: refers to the core Team issues and employee conflicts, turnover and knowledge management, etc. Recommendation: In the process of business operations, firmly establish risk awareness and take preventive measures to prevent business risks to the greatest extent. 1. Establish and improve various corporate rules and regulations, especially the contract management system, financial management system and intellectual property protection system. 2. Strengthen customer credit management. The main purpose is to establish customer files and understand the customer's credit status. 3. Carefully sign and review various contracts signed by the company externally, and strengthen control and supervision over the performance of the contracts. 3. Basic methods to avoid business operation risks Business operations are risky, but risks and opportunities coexist. The greater the risk, the more opportunities there may be. Because of this, many leaders know that there are tigers in the mountains and prefer to travel to the mountains with tigers. A good rational leader should not avoid risks, but should try to reduce risks as much as possible and actively prevent risks in business activities. 1. Learn to analyze risks 2. Be good at assessing risks. You must analyze and predict the negative impacts that risks may bring.

For example, how much loss can be caused if an investment goes wrong? If the financing amount expires and cannot be recovered, how much economic loss may be caused? Once the payment cannot be collected and the inventory is overstocked, how much impact will it have on the turnover of working capital? A bad cycle of capital turnover (cash flow) may cause harm and expected consequences to normal operating activities. 3. Actively prevent risks To prevent risks, active countermeasures must be taken, such as objective evaluation of investment plans, thorough and detailed investigation of the market, formulation of reasonable management systems to ensure a virtuous cycle of circulating capital, mastering scientific decision-making procedures and method. Once a problem occurs in a certain link, we must look at the entire system. Take remedial measures to limit the spread of negative impacts. 4. Avoid and transfer risks. Risks are inevitable, but risks can also be transferred. For example: property insurance is a transfer of investment accident risks; purchasing goods on credit is a transfer of financing risks; leasing instead of purchasing equipment is a transfer of investment risks. As long as it is applied properly, the company's risks can indeed be reduced to a minimum.

How to avoid corporate financial risks

The existence of financial risks will undoubtedly have a significant impact on corporate production and operations. It is of great significance to reveal the causes of corporate financial risks and study the measures and methods to avoid them. 1. Causes of corporate financial risks 1. The lag of corporate financial management systems in adapting to the macro environment. At present, many companies in our country have established financial management systems. Due to unreasonable institutional settings, low-quality management personnel, and incomplete financial management rules and regulations, Due to imperfect basic management work and other reasons, the corporate financial management system lacks the ability to adapt and adapt to changes in the external environment. Specific manifestations include the inability to scientifically foresee adverse changes in the external environment, lagging responses, and ineffective measures, resulting in financial risks. 2. Enterprise financial managers have insufficient understanding of the objectivity of financial risks. Financial risks exist objectively. As long as there are financial activities, there must be financial risks. In practical work, financial managers in many enterprises in our country lack risk awareness and believe that as long as they manage and use funds well, there will be no financial risks. Lack of risk awareness is one of the important reasons for the occurrence of financial risks. 3. Lack of scientific basis in financial decision-making leads to decision-making errors. Financial decision-making errors are another important reason for financial risks. The prerequisite for avoiding financial decision-making errors is scientific financial decision-making. At present, empirical decision-making and subjective decision-making are common in the financial decision-making of Chinese enterprises. The resulting decision-making errors often occur, resulting in financial risks. 4. The internal financial relations of some enterprises are chaotic. The internal financial relations of enterprises are another important reason for the occurrence of financial risks in our country. There are problems in the management and use of funds, distribution of interests, etc. between various departments within the enterprise and between the enterprise and its superior enterprises. Unclear rights and responsibilities and chaotic management result in inefficient use of funds, serious loss of funds, and the safety and integrity of funds cannot be guaranteed. 2. Financial risks of corporate financial management at different stages 1. Unreasonable corporate capital structure and excessive debt ratio. In my country, capital structure mainly refers to the ratio of equity capital to debt capital among all sources of corporate capital. Due to erroneous financing decisions and other reasons, the phenomenon of unreasonable capital structure of Chinese enterprises is widespread, which is manifested in the fact that the proportion of debt funds in total funds is too high. The asset-liability ratio of many companies reaches more than 70%. The unreasonable capital structure leads to a heavy financial burden on the enterprise and a serious lack of solvency, resulting in financial risks. 2. The lack of scientific basis for fixed asset investment decision-making leads to investment errors. In the decision-making process of fixed asset investment, due to the lack of thorough and systematic analysis and research on the feasibility of investment projects by enterprises, and the incomplete and untrue economic information on which decisions are based, the decision-making process is inconsistent. Due to factors such as poor decision-making ability of investors, investment decision-making errors frequently occur. Decision-making errors prevent investment projects from obtaining expected returns and investments cannot be recovered on schedule, which brings huge financial risks to enterprises. 3. Mistakes in foreign investment decisions lead to large investment losses. Enterprises’ foreign investment includes securities investment, joint venture investment, etc. Securities investment risks include systematic risks and unsystematic risks. Due to insufficient understanding of investment risks by investment decision makers, decision-making errors and blind investment have led to huge investment losses for some companies, resulting in financial risks. 4. Enterprises have a large proportion of credit sales and lack of control over accounts receivable. Since my country's market has become a buyer's market, enterprises generally have unsaleable products. In order to increase sales and expand market share, some companies use a large number of credit sales to sell products, resulting in a large increase in the company's accounts receivable. At the same time, due to the lack of understanding of the customer's credit rating during the credit sales process, companies blindly sell on credit, causing accounts receivable to get out of control, and a considerable proportion of accounts receivable cannot be recovered for a long time, until they become bad debts. Assets are occupied by the debtor for free for a long time, which seriously affects the liquidity and safety of the company's assets, resulting in financial risks. 5. The inventory structure of enterprises is unreasonable and the inventory turnover rate is not high. At present, inventory accounts for a relatively large proportion of the current assets of Chinese enterprises, and many of them are overstocked and overstocked. Inventory liquidity is poor. On the one hand, it occupies a large amount of funds for the enterprise. On the other hand, the enterprise must pay a large amount of storage fees for the storage of these inventories, which leads to an increase in enterprise expenses and a decrease in profits. For long-term inventory, enterprises also have to bear the losses caused by the decline in market prices and losses caused by poor storage, which creates financial risks.

How to reduce business operating risks and improve fund use efficiency

1. Main problems existing in current corporate financial fund management

(1) The budget system is in name only; Fund management is organized and disorderly. In recent years, with the continuous deepening of enterprise reform and the further intensification of asset reorganization between enterprises, the scale of enterprises has expanded rapidly, and a large number of group companies have emerged. However, with this comes the internal financial capital management system of enterprises. is relatively backward, mainly reflected in. Financial budget management (fake), fund settlement management (scattered), accounts receivable management (loose), supervision and assessment links (weak), and backward management methods and low efficiency are all incompatible with the requirements of enterprise reform and development. Accordingly, a considerable number of enterprises have not established a sound budget management system. Although some enterprises have a budget system, the budget has not yet become the legal basis for organizing production and operation activities. Rules are not followed and changes are made at will, making the budget a decoration and a lack of funds. There is a lack of unified planning and control of revenue and expenditure. There is great arbitrariness, chaotic use, and unreasonable occupation. The phenomenon of misappropriating production and operating funds for long-term investment often occurs, resulting in unbalanced cash flow and insufficient payment ability. In fact, it relies on borrowing. New debts are used to repay old debts to maintain operations. Some companies have unrealistic budgets, unscientific indicators, lack of rigorous measurement standards and assessment basis, weak cost and expense constraints, distorted cost information, and arbitrary raising or lowering of costs that should be amortized. Expenses are not amortized, accrued expenses are not accrued, and profits and losses are not real. Some companies’ year-end accounting statements seem to have a lot of profits, but accounts collection remains high, non-performing assets continue to increase, and it is often difficult to pay when due.

(2) Inadequate supervision, "control" and assessment. The flow of corporate funds is out of touch with control, severe extracorporeal circulation, weak prior control, post-event audit supervision, and lack of feasible assessment methods. The investment and financing situation of subsidiaries, capital income and expenditure, external guarantees and other contingent liabilities, and profit distribution and other major decision-making information are not fully grasped, and investment decisions are relatively arbitrary. Some corporate leaders cannot clearly explain their own financial status, and financial personnel have no clear understanding of their own financial status. The operating conditions are not well understood, and they are in a subordinate position. The internal audit system is not perfect and cannot play its due role. Social auditing is driven by interests and avoids existing problems. Many times, the accounting department can only follow the leadership’s instructions. The purpose is to handle accounts, resulting in a situation where financial management follows accounting, and accounting follows leadership intentions. Financial supervision is weak and lagging behind, and fund leakage is still serious. For the sake of so-called political achievements, corporate leaders unilaterally pursue profit indicators and often conduct annual assessments of operations. The performance was very good, but potential problems were exposed when the new team took office and cleared assets and capital.

(3) Funds are scattered and inefficient. Most enterprise group funds are centralized and occupied by internal multi-level management agencies. The contradictions are prominent and the use efficiency is low. Some corporate subsidiaries open multiple accounts, the funds are out of control, and the accumulation is serious. The accounts set up by the subsidiaries of some groups range from hundreds to more than a thousand. On the one hand, a large amount of funds are idle within some groups. On the other hand, it is difficult to raise urgently needed small funds, and the ability to adjust the balance of funds is poor. The balance of bank loans remains high, financial expenses have increased, and some subsidiaries within the enterprise group have serious arrears in payment. , the group is powerless, the company is in trouble, and some internal subsidiaries of the group company go their own way when the economic situation is good, always trying to get rid of the group's supervision and control, but when the operating situation is not good or worsens, they turn back to seek funds (4) Behind-the-scenes management methods and means. Many subsidiaries within enterprise groups still rely on the past methods of submitting accounting statements and oral reports to reflect the company's operating conditions and financial status. Due to the arbitrariness of accounting, inaccurate preparation of financial statements, and the influence of human factors, some consolidated accounting statements also cover up the actual operating conditions and outstanding problems of subsidiaries, and the financial accounting information is distorted. In particular, many groups have not yet established the necessary electronic computer financial information transmission, accounting, inquiry and monitoring systems. It is difficult for group companies and investors to understand and grasp the financial dynamics of each company in a timely manner, resulting in lagging information and low efficiency.

2. Countermeasures that enterprises should take in financial capital management

(1) Raising awareness of the importance of financial capital management and strengthening scientific management of enterprises is the establishment of standards The important content of modern enterprise system is the eternal theme of enterprise development. The main link of enterprise management is finance. The core of enterprise financial management is funds, and funds are the blood of enterprises. In the final analysis, an enterprise's financial management is the centralized management and control of capital flow. Judging from the practice of large foreign enterprises, all of them implement centralized control in fund management.

This kind of control is very strict, almost ruthless... >>

How to seize opportunities and avoid risks in business operations?

Risks are everywhere in running a business, including policy risks, business risks, security risks, etc. Consult experts and learn more