Brief analysis and prevention of corporate financial risks

Financial risk of an enterprise is the risk of an enterprise in the course of financial activity, caused by various unpredictable or difficult to control uncertainty of the financial situation, uncertainty, as a result of which the enterprise has the opportunity to incur losses, cannot achieve the expected remuneration.In this paper, a different understanding of financial risk in theory is discussed to discuss financial risk, by comparing the real value of the financial risk of an enterprise, in order to effectively avoid and prevent financial risk.Therefore, business operators need to do a good job in analyzing investment risk, develop specific measures to prevent, control and manage investment risk in order to achieve the goal of reducing risk, improve business management and increase the efficiency of the enterprise.