Theory of SMEs financial risk prevention and control

Abstract

With the rapid development of market-oriented economy, the SMEs face more and more fierce market competition. Financial risk exists everywhere which can't be avoid and has a certain influence on their production and management. The SMEs need to make a full understanding of the characteristics, the present situation and the causes of financial risk in order to survive in the market competition and put forward effective prevention and control measures, and thus lower the possibility of occurrence of risks to ensure their development. This article analyzes the importance and characteristics of enterprises at first, and then studies the present finance of our county enterprises and the causes of these risks, and finally discusses the prevention and control measures of enterprises financial risk.