Financial risk refers to the possibility that under specific objective circumstances and within a specific period, due to various uncertain factors such as the external environment and internal operating conditions that are difficult or unpredictable to control, the efficiency of enterprise capital movement (capital flow) will be reduced and the continuity will be interrupted, and then the actual operating performance of the enterprise will deviate from the expected goal, thus having a negative impact or adverse results on the survival, development and profitability of the enterprise.
Small and medium-sized enterprises have poor adaptability in market operation due to their own weak strength and insufficient funds. Therefore, it is urgent to strengthen the management concept, strengthen the awareness of risk prevention, establish and improve the internal control system of small and medium-sized enterprises, establish a financial risk control system for small and medium-sized enterprises, form a financial risk prevention system that can be followed, combine short-term interests with long-term interests, and strive to enhance the ability of sustainable development and create long-term value.
First, the factors that cause financial risks of SMEs
(1) External environment. The external environment that causes financial risks of small and medium-sized enterprises includes economic factors, natural factors, legal environment, social factors and scientific and technological factors. These factors exist outside the enterprise, and it is difficult to accurately predict and change the huge risks it brings to the management and financial situation of the enterprise. Such as the impact of the current international financial crisis on small and medium-sized enterprises in China, many small and medium-sized enterprises are facing financial paralysis, threatening their survival and development. Due to the limitation of business philosophy, financial resources, material resources and manpower, the financial management of small and medium-sized enterprises can not adapt to the complex and changeable external environment, which will certainly bring financial risks and even financial crises to small and medium-sized enterprises.
(2) Internal factors. Lack of risk awareness of management leads to financial risks. In practical work, many operators, management and financial personnel of small and medium-sized enterprises in China lack risk awareness, and think that as long as production is well done and there is operating profit, as long as funds are well managed, financial risks will not occur. Weak risk awareness is one of the important reasons for financial risks.
Business decision-making mistakes lead to financial risks of small and medium-sized enterprises. Many small and medium-sized enterprises in China generally have the phenomenon of empirical decision-making and subjective decision-making. The main reasons for financial decision-making mistakes are the lack of scientific and reasonable feasibility analysis, serious subjective speculation, and individual decision-making on major issues without collective decision-making approval. Financial decision-making mistakes are another important reason for financial risks.
The backward risk awareness of financial personnel leads to the financial risks of small and medium-sized enterprises. Due to the ideological constraints of the financial system for a long time, financial personnel are backward in risk awareness, and have not yet established scientific concepts such as time value and risk value, which is reflected in the financial management objectives, that is, they have failed to establish optimization ideas.
The imperfect internal control and supervision system of enterprises leads to financial risks. The internal control system of small and medium-sized enterprises is not perfect, the restraint mechanism of the management department is not in place, the audit supervision is weak, and even the necessary internal monitoring system and system are lacking. There are unclear rights and responsibilities and chaotic management in the management, use and benefit distribution of funds, which makes the use of funds inefficient and the loss of assets serious, and the safety and integrity of funds cannot be guaranteed.
Second, measures to prevent financial risks of SMEs
Financial risk management refers to a financial management activity in which enterprises take various scientific and effective means and methods to predict, identify, analyze, control and deal with all kinds of risks on the basis of fully understanding the financial risks they face, so as to ensure the continuity, stability and efficiency of enterprise capital movement at the lowest cost.
(A) the establishment of financial crisis early warning system. As a low-cost diagnostic tool, the enterprise financial crisis early warning system can predict the signs of financial risks. When the key factors that may endanger the enterprise's financial situation appear, the financial crisis early warning system can issue a warning to remind operators to make early preparations or take countermeasures to reduce financial losses and control the further expansion of financial risks. Operators and managers of small and medium-sized enterprises should strengthen the analysis of financial risk indicators at any time, adjust their marketing strategies in a timely manner, rationally dispose of non-performing assets, effectively control the deposit and loan structure, moderately control the amount of funds, and reduce the occupation of funds. They should also pay attention to accelerating the turnover of inventories and accounts receivable, so as to turn them into monetary assets as soon as possible, reduce or even eliminate bad debt losses, accelerate the liquidity of enterprises, and improve the utilization rate of funds.
(B) the establishment of financial risk awareness. Small and medium-sized enterprises should always pay attention to the changes of national macro-policies, industrial policies, investment policies, financial policies and fiscal and taxation policies, and the management should predict the possible negative effects of enterprise investment projects, business projects, borrowing funds and operating costs in advance so as to take timely measures. The management should pay attention to the changes in the relationship between supply and demand in the market, so as to prevent the financial cost from rising and the capital chain from being interrupted due to the increase of enterprise costs and capital demand, resulting in the financial crisis of operating loss or insolvency. Business operators should adjust their business strategies and investment directions in time according to changes in policy factors to avoid enterprises entering financial crisis. In terms of sales, we should pay attention to the connection between production and sales, fix production by sales, adjust marketing strategies in time, actively explore new channels, cultivate new users, speed up the collection of payment for goods, strengthen business integration, and improve the overall risk resistance level of enterprises.
(3) Establish an internal supervision system for enterprises. Internal audit control is an independent evaluation system for the compliance, rationality and effectiveness of economic activities and management systems within an enterprise, and in a sense, it is the re-control of other controls. Internal audit should be relatively independent in the enterprise, and should be independent of other management departments, so as to ensure that important problems found by the audit department can be delivered to the management and management. For small and medium-sized enterprises that do not have the conditions, external audit institutions and personnel can be hired to conduct internal audit.
(4) Establish an internal control system. It is necessary to establish internal control systems and accounting control systems for small and medium-sized enterprises, such as monetary fund control, purchase and payment control, sales and collection control, and foreign investment control. Implement an internal containment system to separate and restrict incompatible positions; Establish avoidance system; The immediate family members of the person in charge of accounting shall not serve as cashiers; It is strictly forbidden to misappropriate or lend monetary funds without authorization; It is strictly forbidden that income is not recorded; It is forbidden for one person to keep all the seals required for payment; The whole process of purchasing and payment, sales and collection business shall not be handled by the same department or individual; Sales revenue should be recorded in time.
Financial risks exist in all aspects of financial management, and mistakes in any link may bring financial risks to enterprises. Operators, managers and financial personnel of small and medium-sized enterprises must prevent risks throughout financial management. Understand the real situation of enterprise financial operation in time and optimize the financial structure, so as to avoid risks, improve bad business conditions, achieve enterprise goals and ensure the survival and development of enterprises.