The Financial Risk and Precautionary Measures in the Development of Geological Prospecting Units

摘要

Geological prospecting units focus the management of financial risk on raising funds, investment and capital flow. Their financial risk mainly manifest in the following aspects, including imbalanced structure of capital, lack of scientific investment, improper strategy of capital recovery, and lack of effective control over accounts receivable, as well as imperfect strategy of revenue distribution. The fact that financial management system could not adapt to complex, changeable macro environment, internal financial control system is not sound and the management do not fully know the objectiveness of financial risk, is the main cause of financial risk in geological prospecting units. To strengthen the management of financial risk, geological prospecting units should establish a sound early warning mechanism, an index system of economic responsibility based on cash flow, perfect internal financial control system and intensify administrators' sense of financial risk.