Research on the Evaluation and Control of Corporate Financial Risk -- An Empirical Analysis Based on a Financial Indicator System

Abstract

Against the backdrop of increasing economic uncertainty and intensifying market competition, corporate financial risks have become more complex and diversified. Scientifically evaluating the level of corporate financial risk and adopting effective control measures are
of great significance for safeguarding firms' sustainable operation and enhancing their core competitiveness. Based on financial risk management theory, this paper constructs a corporate financial risk evaluation indicator system covering solvency, operating capacity, profitability,
and development capacity. Using relevant financial data of Chinese listed companies, descriptive statistical analysis and comprehensive evaluation methods are applied to conduct an empirical study on corporate financial risk conditions. The results show that there are significant differences in financial risk levels among enterprises, and solvency and profitability are the key factors affecting corporate financial risk. On this
basis, the paper proposes targeted control measures such as improving financial risk early-warning mechanisms, optimizing capital structure,
and strengthening internal control, with the aim of providing references for corporate financial risk management practices.