With the rapid changes in the econo

With the rapid changes in the economic environment, the financial risks facing companies are developing more broadly and deeply. The core issue of financial management is financial risk management. One of the main risks faced by companies is financial risk. Therefore, business owners should manage financial risks completely and effectively, identify the causes of risks, adopt appropriate prevention strategies, establish an early warning system, and use the most economical and minimal management methods to minimize financial risk. Effectively manage financial risks based on identifying, assessing, and analyzing them. Based on a system analysis of the root causes of financial risks, this paper establishes early warning indicators of corporate financial risks and appropriate decision-making of financial risks, and provides reference materials for financial risk management and prevention. The market economy is gradually established in a rapidly changing environment, various uncertainties are increasing, and corporate financial risks are becoming increasingly complex and changing. Therefore, deepening corporate financial management has become a core issue in corporate management. Research on financial risk forecasting of companies is urgently needed. Therefore, it is urgent to establish an effective financial early warning system and to control financial risks. This reduces risk, improves management efficiency, and improves revenue.