Fundamentally speaking, due to the small scale, small and medium-sized enterprises, their profits are unstable, it is difficult to raise funds, and their ability to absorb credit is limited, which is likely to cause difficulties in liquidity turnover. In the daily operation process, some SME managers excessively pursue the short-term profitability of the enterprise, ignore the sustainability of the enterprise's development, only consider the benefits, and do not assess the hazards, which leads to the blind expansion of the business field. Therefore, only by establishing a relatively complete risk control mechanism, strengthening the identification and measurement of financial risks, weighing risks and gains, and controlling losses, can SMEs truly guard against risks and protect the long-term development of SMEs.
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