Effective Measures To Prevent Financial Crisis

Enterprises should comprehensively evaluate the financial risks that may be generated by each investment plan. They should be prepared for danger in peacetime and understand the meaning of "born in trouble and die in peace and happiness".

The financial crisis of enterprises is not isolated. In fact, the crisis of any enterprise will gradually undergo a gradual process of accumulation and pformation from initiation to gradual deterioration. The prevention of financial crisis should start with the observation, analysis and detection of the economic crisis, industrial crisis and major events that affect a wide range. Through setting and observing the changes in sensitive financial indicators, we can timely predict the crisis signals, raise awareness of prevention, and establish a financial crisis early warning system.

Enterprise managers should make a multi angle analysis and judgement on the possibility of the occurrence of the financial crisis. They should make good financial planning, compile budgets and operation plans in advance, and regularly hold meetings to review the differences between the budgetary and actual amounts, including: the results of capital allocation, the cost structure of funds, the payment of interest plans and operating profits, the elimination of bad customers, the occurrence of bad debts, etc., and the establishment of effective internal control system, the establishment of profit centers and responsibility centers, the careful calculation and careful calculation, and no major investment in the recession, and the avoidance of usurious loans to underground banks.

The enterprise financial crisis early warning system, as a low-cost diagnostic tool, can predict the signs of financial crisis. With the help of financial reports, business plans and other related accounting materials provided by enterprises, it can make use of accounting, statistics, finance, business management and marketing theory to analyze and predict the business activities and financial activities of enterprises through ratio analysis, comparative analysis, factor analysis and various analysis methods, so as to find out the potential business risks and financial risks of enterprises in operation and management activities, and to warn enterprises to supervise enterprises before the crisis occurs.

Effective measures are taken to prevent potential risks from turning into losses and play a precautionary role, which may jeopardize enterprises.

When the key factors appear, the financial crisis early warning system can warn in advance to remind the operators to prepare or take measures to reduce financial losses and control the further expansion of the financial crisis, so as to provide a reliable basis for enterprises to rectify the direction of operation, improve business decisions and allocate resources effectively.

Enterprise solution

To connect closely and pay close attention to the "crisis prone zone" which may cause business and financial risks is very important. The main control points include: risk control, risk control points, capital cost control points, investment flows in investment projects, investment return, investment recovery period control points, product development, technical and economic matching, functional cost, product life cycle control points, commodity life cycle control points, sales network control points in commodity marketing, sales contract performance control points, credit accounts receivable control points, inventory structure control points, material distribution, control points for production and marketing in the circulation process, and control points of interest relations in terms of enterprise benefits, owners' interests, shareholders' rights and interests, dividend distribution and profit distribution. The key link is to closely link enterprise finance with management and development strategy.

Enterprises should grasp effective control points, carry out dynamic analysis and prediction of the risk and degree of financial crisis, and take targeted measures and measures to solve the hidden dangers of financial crisis, so as to resolve or obstruct the unfavorable trend of financial crisis, and try to avoid or delay their occurrence.

Even if the trend of financial crisis is inevitable, it can also play a pre warning role, prompting enterprises to make preparations for dealing with and dealing with financial crisis ahead of time, so as not to lose the initiative to deal with crises when the financial crisis breaks out.