How to Effectively Identify Financial Risks in Financial Management

Abstract

In the context of global economic integration, Chinas financial industry has been influenced by the international situation, and the openness of the industry is obvious. The entry of foreign financial institutions has made the competition in Chinas financial market more and more intense, which has intensified the financial risks while promoting economic growth. In view of this, this paper will discuss in depth the effective identification of financial risks in financial management and put forward feasible protection countermeasures, aiming to help the financial industry further improve its risk management. The results of this study show that accurate identification of financial risks can provide a basis for financial management and fully maintain economic efficiency. To meet the international development trend, the financial industry must do a good job of risk identification, assessment, and prevention so as to reduce the probability of risk and the losses it brings. Since financial risks are inevitable, each company must face the increasingly complex economic market according to its own situation, which puts higher demands on the risk management of companies.