Financial Risk Study Of Chongqing YT Communication Construction Group

Chongqing YT Communication Construction Group Company is a highway construction company, which also is a key group of Chongqing to invest, construct, and to operate highway of Chongqing, established by the Chongqing government. There are some problems in the financial management of Chongqing YT Group after more than 10 years development. in this paper, we make a financial risk analysis of Chongqing YT Group.In the first, we analysis the financial system of Chongqing YT Group, and we find that financial system is not accustomed to the macro-economy environment, such as the financial management staff have weak awareness of the financial risk; the decision-making is not very scientific and the financing operation is short of the clearity.Then, we analyze the performance and the forming mechanism of the financial risk. We find that the sources of the financial risk are the following five aspects: funds-raising, investment, cash current, capital-reclaiming, profits allocation. In the second place, we realize the factors for the financial risks respectively are embodied for funds-raising risk in the uncertainty of the investment margin and capital cost rate, the irrationality of the debts as well; investment risk comes from gross profit rate and asset profit ratio; management risk mostly is in account receivable and other multi-aspects.At last, we make some suggestions to Chongqing YT Group. How to control financial risk in a many reasons for the risk are concerned, such as awarding financing management system, inner controlling system, results-evaluation, system and consideration. Also, a specific scientific measures to control the risk, are all taken into financing controlling system are put forward, which emphasis on the establishment of various management measures relating to the financial risk controlling, the improvement of the management system, the mode of in-group results evaluation, and measures and suggestion on strengthening risk-controlling so as to perfect the financing management system of a enterprise group, to make it better for a parent company to manage a subsidiary company, to set up a sound inner financing management system, to establish in-group evaluating and rewarding system and to reinforce the management of group's financial risk.