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Zhi Finance » Risk prevention before investment and risk control after investment

Risk prevention before investment and risk control after investment

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The investment risk here mainly refers to the financial risk of investment.

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As for investment, many investors focus more on the prospect of investment, whether the basic logic of investment is reasonable and valid, and less on the financial risk of investment, which is exactly one of the reasons why many investors fail to invest. The project is very good, but without paying attention to the prevention of financial risks, the investment is easy to lose.

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Investment risks include risks before investment and risks after investment. Before the specific implementation of investment, it is necessary to prevent investment risks, mainly the financial risk trap of the proposed investment project; After the investment is implemented, the investment risk should be controlled, mainly the financial risk loopholes of the investment project. The following is a brief description of risk prevention before investment and risk control after investment, hoping to attract investors’ attention to investment risks.

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1、 Risk prevention before investment:

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Before investment, investors should pay special attention to prevent financial risk traps of the proposed investment project, such as:

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1. The paid in capital data of the invested project is not true. For example, the book paid in capital of a project company to be invested is recorded as 200 million yuan, but the actual investment is only 38 million yuan.

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2. The book assets of the invested project are not true. For example, the value of houses, plants, machinery and equipment recorded in the book of a project company to be invested is not true, and the book value of fixed assets is falsely increased by more than 30 million yuan. At the same time, the construction in progress and the advance payment related to the project recorded in the book were not true, and the book value was falsely increased by more than 50 million yuan only based on the project contract.

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——Fixed assets and construction in progress recorded in the book are not true, which corresponds to a false increase in the amount of accounts payable.

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3. The invested project company has not paid salary in arrears for a long time. For example, the salary of ordinary employees of a proposed investment project company has been in arrears for more than 3 months, while the salary of senior executives has been in arrears for six months.

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4. The profit statement, income data, cost data and profit data prepared by the invested project company are half true and half false. For example, in order to attract investment and improve the confidence of investors, a project company that plans to invest has hired external financial experts to help prepare false profit statements with continuous profit growth.

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Many invested project companies, in order to show the authenticity of their company’s book data to investors, generally ask local accounting firms to issue false audit reports, and some even go to Beijing to find intermediary assurance agencies to do false authentication to show their credibility.

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If the invested project has such situations as the above, first of all, it will cause the investor to suffer a great loss in equity and cause great losses to the investor! Secondly, once the investor’s capital is invested, it may be diverted to repay false debts, pay unpaid wages, etc., and the invested capital will soon be emptied.

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Therefore, if an investor takes a fancy to an investment project and decides whether to invest, he or she must first make a financial risk diagnosis and research before investment. Through the diagnosis and research on the financial risk of the invested project, he or she can reveal various financial risks hidden by the invested project company to objectively evaluate the feasibility of the project investment.

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In this regard, it is suggested that investors should not be blindly confident, think that they have been an enterprise themselves, think that they know the enterprise very well, and even think that they have the ability to see through the hearts of the people at a glance, but look down on the seemingly loyal boss of the invested project. Because in reality, there are so many investors who are deceived and cause serious investment losses!

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2、 Risk control after investment:

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Investors are optimistic about a project and decide to invest after eliminating the corresponding risks through financial risk diagnosis and research. In the next step, special attention should be paid to financial risk control after investment. There are many financial risks after investment, such as:

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1. Funds are misappropriated or even embezzled. In reality, the methods of misappropriation and corruption are ever-changing.

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2. Money is squandered. For example, the investment capital will be used to buy luxury cars, luxury houses, high-end office furniture, and food and drink immediately after it arrives.

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3. The financial management is in chaos, and there are many problems, such as running, emitting, dripping and leaking. Such as purchasing rebates and price differentials, warehouse theft, workshop waste and theft, and indiscriminate sales discounts.

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In reality, due to the lack of financial control, the investment funds of good projects are soon exhausted, leading to the bankruptcy of projects everywhere.

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Therefore, after investment, we must pay attention to financial risk management and control, at least in the following two aspects:

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1. Establish and improve the monitoring mechanism to enable investors to monitor the invested enterprises at all times.

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2. It is required that the invested enterprise must establish and improve its financial system, so that all kinds of economic income and expenditure can be operated according to specifications.

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The invested project enterprise is required to establish a sound financial system and operate in a standardized manner, which is also to ensure that the invested project can operate in a standardized manner after the actual investment of funds. If the financial management of the investee is chaotic and the financial operation is not standardized, then the situation of running, emitting, dripping and leaking will be very serious, and even corruption and misappropriation will occur directly. If this is the case, the amount of capital invested by the investor will be wasted!

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Therefore, we can only trust the monitoring mechanism and establish a sound financial system to control the risk of investment projects after investment. If there is no monitoring mechanism, and if the monitoring mechanism is not established rigorously, the investors cannot be effectively monitored, then most investors will be trapped! What’s more, I don’t know!

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