财务风险外文翻译

Research on Financial Risk of the Enterprise

Shanshan Li

School of economics and management,

Henan Polytechnic University, P.R. china 454000

E-mail:shanshanli@http://

Abstract—With the intensification of market competition, the Businesses cannot do without financing. However, financing

will surely bring out risks. Fundraising risk means a variety of financial risk faced by enterprises increases day by day. This

paper primarily probes into the definition, types, causes and unpredictable, which is from changes in supply and demand of potential harms of financial risk, and puts forward some detailed funds, the whole macroeconomic and market environment countermeasures to avoid it. changes, and etc. Fundraising risk basically include interest Keywords Financial Risk; Risk Identification; Risk Prevention rate risk, exchange rate risk, refinancing risk, the financial leverage and purchasing power risk. Interest rate risk means

the cost of financing changes brought the fluctuation of price I. INTRODUCTION

of finance assets; Exchange rate risk refers to the uncertainty

With the strengthening of economic globalization and market in the foreign exchange business due to exchange-rate mechanism, the competition between enterprises is also flexibility. Refinancing risk means the uncertainty for getting tougher. More enterprises are facing more severe companies refinancing. The financial leverage is the enterprise financial risks. Financial risk focuses on the management of

use debt adjustment rights and interests capital income

uncertainties in companies’financial operating effects. The

method. Enterprises can use the financial lever to bring the

underestimation of financial risks and ineffective management

interests of the financial lever to enterprise shareholder or the

would cause tremendous economical loss, and some is close to

going bankrupt even, close down. So the research in enterprise owner rationally. As a result of financial leverage is awareness, prevention and control of the financial risks has influenced by many factors, in the interests of financial become an important subject. The study of the financial risk leverage was also accompanied by incalculable financial risks. management is not only theoretically but practically Purchasing power risk refers to some effect on finance

affected by currency fluctuations. significant.

2) Investment risk

BASIC THEORY OF FINANCIAL RISK II. THE Investment risk refers to risk due to the future of the enterprise

income uncertainty, future income and practical; the deviation A. the Definition of Financial Risk

between the expected return. When developed areas where

Financial risk, basically speaking, refers to a variety of

market development is not mature, and more likely to be a

unpredictable and uncontrollable factors in the financial

direct result of the increased level of investment risk factor. In

system existing objectively, which result in the fact that the

China, investment has two forms, that is, direct investment

financial benefits actually deviate from the expected financial

and securities investment. Typically, direct investment

benefit, causing the losses of the financial benefits. Financing

involves the purchase of assets such as land, plant. Securities

risk is the existence of an objective economic phenomenon, a

investments include investments in shares and in bonds. For

variety of financial risks in a concentrated expression,

many decades investments in shares and bonds are one of the

throughout the various segments of the financial activities.

most commonly used and popular kinds of investments.

From the economics point of view, as a microeconomic risk,

Investments in shares is a kind of profit mechanism of mutual

the modem corporate financial risk is the currency

benefits and risks. The biggest characteristic of bonds invest is

manifestation of all risks that companies faced, which is the

stable income, higher safety factor, but also has strong

concentrated on expression of all risks.

liquidity. Whether investing in stocks or bonds, in the many

B. the Types of Financial Risk uncertainties of the market environment, still have to grasp the In the market economy conditions, the financial risk is an sound principles of risk prevention.

3) Risk of income distribution. objective existence. For business, financial risk is closely

related to the managements about the raising and assigning of Risk of income distribution, often called transaction exposure,

means bad fund movement because of uncertainty in

fund, especially fund safety. It reflecting risks when

production, supply and sales, resulting in changes in value.

enterprises are in financial activity and dealing with financial The contents of this risk mainly include: purchase risk, relationship. There are several different types of financial risk, production risk, inventory liquidation risk and accounts including fundraising risk, investment risk and risk of income receivable realizable risk. Purchase risk means insufficient distribution. supply of material for changes what vendors made in raw 1) Fundraising risk materials, and the changes in actual payment period for

different credit conditions and payment. Production risk refers to changes in the production process for new information, changes in energy market prices and personnel changes and etc. Inventory liquidation risk refers to product sales blocked for the product market changes. Accounts receivable are relatively liquid assets, usually converting into cash within a period of 3 to 6 days. Account receivable is an important part of state expenditure of current assets, the strong or infirm …… 此处隐藏：16450字，全部文档内容请下载后查看。喜欢就下载吧 ……