On the causes and preventive measures of financial risks in colleges and universities

On the causes and preventive measures of financial risks in colleges and universities

With the rapid development of China's economy and the increasingly perfect market economy system, China has paid more and more attention to and invested in higher education. The forms and contents of financial management in colleges and universities are becoming more and more diversified, which increases the financial risks in the process of fund operation and faces great challenges. In the process of raising and using funds, colleges and universities have to face fierce market competition and complex and changeable market environment. In addition, colleges and universities pay insufficient attention to financial risks, fail to establish a sound financial risk management system, and financial management is not standardized, which eventually leads to financial risks. This paper mainly studies the causes of financial risks in colleges and universities, and puts forward corresponding measures to prevent financial risks in colleges and universities through analysis.

Keywords: colleges and universities; Financial risk; Cause of formation; counter-measure

Since the reform and opening up, China has gradually deepened the reform of market economy, and the state attaches importance to the investment in higher education and scientific research. The scale of colleges and universities is constantly expanding, and the financial management mode is increasingly diversified and complicated. However, due to the large number of colleges and universities in China, which are greatly influenced by regional influence and policy support, and the unbalanced investment in education, many colleges and universities will take the behavior of raising funds by borrowing when the financial support is insufficient. Due to the weak awareness of financial risk management in colleges and universities and the lack of scientific and standardized management of fund operation management, they will face financial risks. There are many colleges and universities in China, and many colleges and universities have financial risks because they ignore the importance of financial management. The out-of-control risk has caused the economic crisis of colleges and universities, which directly affects the quality of running colleges and universities.

First, the causes of financial risks in colleges and universities

(1) The awareness of financial management in colleges and universities is weak. Due to the particularity of financial management in colleges and universities, under the protection and intervention of national policies, the management of colleges and universities does not pay enough attention to the control of financial risks, and their awareness of financial risk management is weak. Did not take effective preventive measures to control financial risks. With the continuous expansion of the enrollment scale of colleges and universities all over the country, the competition among colleges and universities is becoming increasingly fierce, and colleges and universities continue to increase investment, improve school conditions and attract students. However, due to the unbalanced investment in education, many colleges and universities have to borrow money to raise funds, but they have not paid enough attention to the financial risks brought by borrowing. Due to the lack of necessary financial risk assessment and financial risk prevention measures, it is easy to lead to poor financial turnover, increased liabilities and financial risks.

(2) The financial management system is not perfect. With the help and protection of national policies, China's colleges and universities have weak awareness of financial risk management, imperfect financial management system and lack of effective financial risk prevention measures. There are many problems in the financial management system established by many colleges and universities in China, such as uneven quality of managers, unreasonable institutional setup and imperfect financial management rules and regulations, which lead to lack of adaptability to changes in the external environment and are prone to financial risks. Some rules and regulations and financial management measures are imperfect, lacking specific contents related to business processes and workflows, which are difficult to implement, thus causing financial risks.

(3) The setting of financial management institutions in colleges and universities is unreasonable. The proportional relationship between equity capital and debt capital in university capital is called university capital structure. Influenced by the operation mode of colleges and universities, many colleges and universities in China have unreasonable capital structures and high financial risks. The purpose of financial management in colleges and universities is to improve the strength of running schools and promote the sustained and stable development of colleges and universities. Unreasonable capital structure easily leads to financial risks, which makes the development of colleges and universities face difficulties. According to the modern financial management theory, high risk can bring high income, but the blind pursuit of expanding the strength of running a school to attract students will increase debt financing. If colleges and universities can't achieve the expected economic benefits by borrowing capital, they are likely to fall into financial crisis and be heavily in debt, which will affect the normal operation of colleges and universities. For regional universities, the financial risks caused by different capital structures are a double-edged sword. Reasonable and standardized capital structure can improve the efficiency and competitiveness of colleges and universities, so as to survive in the fierce competition. The unreasonable capital structure of colleges and universities causes the capital chain to break, the invested capital is difficult to recover, and the financial operation is unbalanced, which leads to the financial risk of colleges and universities and seriously affects the development of colleges and universities.

Second, measures to control the financial risks of colleges and universities

(1) Strengthen the awareness of financial risk control in colleges and universities. As the decision maker of financial management, the management of colleges and universities must pay full attention to the financial management of colleges and universities, strengthen the awareness of financial risk management and control, pay full attention to it ideologically, comprehensively consider various factors in the process of financial management, formulate feasible financial management plans, strengthen the prediction and monitoring of financial risks in colleges and universities, and be alert to the links prone to financial risks. We should not ignore financial risks in order to blindly expand the scale of running a school. For example, the management of colleges and universities should pay full attention to financial risks, arrange leaders with financial risk management experience to be responsible for financial management of colleges and universities, and establish a financial risk accountability system. If financial risks occur, the responsibility will be borne by people. The management of colleges and universities also needs to fully mobilize the enthusiasm of all teachers and students, and all staff should participate in the management and control of financial risks in colleges and universities. Teachers and students should reflect the existing problems and possible financial risks in financial management of colleges and universities through the campus information platform and the principal's mailbox, and form an atmosphere of risk prevention for all staff.

(2) Improve the management and control of financial risks in colleges and universities. The management of colleges and universities must fully understand financial risks, understand the changing trend of external environmental factors, change the traditional concept and mode of financial management, strengthen the supervision of financial risks, improve the financial management system of colleges and universities, improve the professional quality of financial managers, clarify the responsibilities of managers in financial management, attach importance to the control of internal financial environment and improve the financial management system of colleges and universities, which will help to create an internal control environment for financial risks. Taking financial risk control as the focus of university management, perfecting the financial risk management control system, establishing financial management institutions under the responsibility of school leaders with financial risk management experience, strengthening the construction of financial management professional teams, hiring excellent financial management talents and forming a good internal control environment can effectively reduce financial risks in universities and promote the stable and healthy development of universities. Colleges and universities need to formulate targeted financial management control system and establish financial risk control responsibility system according to their own financial management situation, and put the responsibility on people, who will manage and who will be responsible for analyzing and preventing financial risks according to financial management situation, and formulate targeted scientific and standardized financial risk control measures to improve the financial risk control level of colleges and universities.

(3) Establish financial risk early warning mechanism. Through the investigation and analysis of university financial operation, we can understand the operation mode of university capital and make scientific and reasonable prediction and judgment on the risks existing in the process of capital operation. The establishment of financial risk early warning mechanism can effectively reduce the financial risk of colleges and universities, which is interdependent with financial management system. We should strictly monitor the key indicators of financial management in colleges and universities, such as operating performance indicators, solvency indicators and investment risk indicators, and predict financial risks in advance. In the process of risk decision-making, colleges and universities should choose less risky investment and financing schemes through financial risk analysis to reduce the financial risks of colleges and universities. If the risk decision-making process is not conducive to the operation of colleges and universities, colleges and universities need to adjust or terminate the plan in time. In addition, colleges and universities can reduce financial risks by improving their own risk prevention and control level, ensure the stability of financial management in colleges and universities, effectively avoid financial risks and promote the stable development of colleges and universities.

(4) Implementing the internal financial audit system in colleges and universities. Implementing the internal financial audit system in colleges and universities can effectively reduce the financial risks of colleges and universities, scientifically and reasonably establish the internal control organizational structure, clarify the rights and responsibilities of financial managers, clarify the financial audit business process, and establish an efficient business operation mechanism. The risk control system of colleges and universities must be coordinated with the operation of financial capital in colleges and universities, so that all staff can participate in the financial risk management control, so that risk control can run through every link of business process and every link of financial management can be fully controlled. The establishment of internal financial audit system in colleges and universities, the implementation of financial audit responsibility system, the responsibility to people, the formation of a scientific and standardized internal financial audit system, strict financial audit, can effectively reduce the financial risks of colleges and universities.

Three. Concluding remarks

Colleges and universities must pay full attention to financial management, establish awareness of financial risk control, optimize financial management structure, establish and improve risk management mechanism, standardize financial management behavior, reduce financial risks, establish risk early warning mechanism and improve financial audit system, find financial risk signals in time and accurately predict financial risks, so as to establish an effective financial risk management system in colleges and universities, minimize financial risks and promote the stable development of colleges and universities.

refer to

1. Yan Zhenhong. Causes and prevention of financial risks of enterprises in China. Journal of Jiangxi University of Finance and Economics, 200 1(4).

2. Tang Xiaoyun On financial risk management in colleges and universities. Shanghai Accounting, 2000(2).

3. have children. On financial risks in colleges and universities. Monthly accounting report, 1998( 12).

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