Financial risk refers to the opportunity and possibility that the financial benefits of an enterprise deviate from the expected benefits due to various uncertain factors in its financial activities, thus causing losses.

Financial risk refers to the opportunity and possibility that the financial income of an enterprise deviates from the expected income due to various uncertain factors in the financing activities of the enterprise, thus suffering losses.

The financial risks of modern enterprises exist in all aspects of enterprise financial activities, including fund-raising activities, investment activities, fund recovery and income distribution.

The financial risk of modern enterprises exists in all aspects of enterprise fund-raising activities, including fund-raising, investment, fund withdrawal and income distribution activities.

This paper takes financial risk as the object, analyzes its causes from the connotation of financial risk, and then studies how enterprises can effectively avoid and prevent financial risks.

This paper takes financial risk as the research object, starts with the connotation of financial risk, analyzes its causes, and then studies how enterprises can effectively avoid and prevent financial risks.

Therefore, enterprise managers need to analyze the causes of investment risks and formulate specific measures to prevent, control and manage investment risks, so as to reduce risks, improve management and improve enterprise efficiency.

Therefore, enterprise managers need to analyze the causes of investment risks and formulate specific measures to prevent, control and manage investment risks, so as to reduce risks, improve management and improve enterprise benefits and profits.