The study on financial risk identification based on matrix model

Abstract

In this paper, the author thinks that financial risk identification is core and basis of enterprise risk management and that enterprise's financial risk is correlated with competitiveness. It puts forward three-dimensional financial risks identifying principles including index system and matrix model to support enterprise's risk management and competitiveness theory. It explores the identification principle of three-dimensional financial risks so as to give an efficient method. It explains the principle and builds matrix models to identify financial risks from three dimensions.