Abstract

Financial risk is a critical variable in forming enterprise’s financial crisis, the cyclical showing of which is an objective law undecided by the will of people. Although financial risk identification is very important to enterprise, but there is still not an effective way. Combing with matrix identification principles, this paper puts forward a matrix model for enterprise to identify its financial risks. Firstly, it divides financial risks of enterprise into three types what are financial environment-adaptation risk and financial resource-allocation risk and financial stakeholder-cooperation risk. Secondly, it explores the identification principle of three-dimensional financial risks. Thirdly, it builds a matrix identification model for identifying three-dimensional financial risks of enterprise and gives an algorithm. The result shows that financial risk identification matrix model can provide theoretical and technical support for enterprise’s financial risk identifying system.

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