Smith (2000) 7) believes that to effectively control the financial risk of an enterprise, the enterprise needs to be prepared for the following three aspects: ① formulate reasonable risk control objectives according to the enterprise's own situation; ② carry out in-depth analysis of the financial data of the enterprise analysis. At the same time combined with other relevant information. Accurately identify the financial risks of the enterprise. ③ Combine the symptoms and the root causes, analyze the essential factors that lead to the occurrence of financial risks, and use this as an entry point to predict and prevent financial risks.
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