【正文】 sed to in the area of accounting and finance when creating economic value. Different from financial institutions such as banks and funds, nonfinancial entities, mainly firms, have financial risks in various management areas, for instance, strategy, market, operation, regulation and finance. Some risks in aforementioned areas will finally influence firm?s capital investment and finance significantly. It is not easy to delimit the boundary of financial risk for nonfinancial firms because general financial risk mainly refers to risks of banks or other financial institutions, and general corporate risk management does not select financial risk as a special research and control area. In this article, I refer to the research conclusion of Financial Risk Management Framework of Stateowned Enterprise, which was conducted in 20212021 by School of Economics and Management (SEM), Tsinghua University and Research Center of Stateowned Assets Supervision and Administration Commission (RCSASAC), to establish a financial risk system for nonfinancial firms (Chen, Market Risk Cheng, 2021). In this research, Chen and Cheng first established a general risk indices system of SOEs, then analyzed the correlations between financial risk and strategy risk, operation risk, market risk, regulation risk, information risk respectively, and finally generated a risk system that includes all financial risk indices and other indices that will influence one or two financial indices. I This financial risk system includes all financial relevant risk factors in a mon firm, providing us a stepping stone in financial risk management. To the best of my knowledge, this system is the first and the only diagnostic tool for financial risk management in nonfinancial firms. Ⅲ . Methodology I divide my research design into 4 parts: construction of corporate governance indices, construction of financial risk indices of nonfinancial firms, data collection and data analysis. 1. CorporateGovernance Indices Many institutions, such as OECD, APEC, ICGN, CEPS, etc., have set up principals for corporate governance with consideration of specific law, history, culture and custom in their jurisdiction. Nevertheless, we do not have a global evaluation standard so far. As far as china is concerned, Li ., by adjusting international principals into china?s context, issued an evaluation system CCGINK that has been adopted by Shanghai Stock Exchange (SSE) as corporate governance index. In my research, I will refer to, with some adjustment, Prof. Li?s years of efforts in CCGINK and apply this system into my analysis of layered corporate governance concept aforementioned in literature review. A. Relationshipbetween shareholder and manager I use two indices to measure this relationship. a. Board of Directors (BoD) Board of directors includes constructions of boards, rights and obligations of directors, efficiency of boards and pensations of board directors. Generally, these aspects delineate the function of boards in corporate governance as monitors of top management. b. Incentive and evaluation of manager (InEM) As the agent, managers should abide by their fiduciary responsibilities. We use 1) Appointment and Removal of executives, 2) Performance evaluation and 3) Incentive plan to appraise managers? alignment with shareholders? interests. In order to avoid controlling shareholders? expropriation of minority shareholders, corporate governance should have mechanism arrangements, such as: a. Independent director (ID) Independent director includes appraisals of proportion, pensation and independence of independent director. These indices will help us to grasp a general picture of independent director?s function in protection of shareholders? interests. b. Supervisory board (SD) Supervisory board mainly consists of nomination, working time, pensation, scale and effectiveness of supervisory board directors. These arrangements will ensure supervisory directors to take effective roles in equal protection of shareholders? interests. c. Connectionbased trading (CBT) CBT mainly checks whether controlling shareholders have the opportunity to expropriate minority shareholders, such as horizontal petition, insider trading, funds embezzlement and loan guarantee. d. Protection of minority shareholders (PMS) There is one index to measure PMS, . the proposals of minority shareholders in shareholder meeting. If minority shareholders have submitted their proposals in the provisional shareholder meeting, the corporate seems to have attended the interests of minority shareholders. e. Information Transparency and Disclosure (ITD) Information transparency and disclosure is important for minority shareholders to monitor controlling shareholders? and managers? decision and operation. I use information integrity, authenticity, accuracy and timeliness to measure ITD. C. Consideration of all stakeholders Global principals of CG have noticed that protection of all interest groups will benefit the longterm growth of a pany. As the most general scope of corporate governance, stakeholders should also be considered, even with not so many pragmatic implications. In this article, I will introduce the following indices to measure stakeholders? interests: a. Participation of Employee (PoE): the proportion of employee supervisory director and the proportion of employees? share. b. Social Responsibility (SR): social donations and environment protection. c. Investment Relationship Management (IRM): investors? munication. d. Supervisory and Regulatory Management (SRM): fines or awards from supervisory and regul