Study On Financial Risk Warning In Construction Engineering Enterprise

The enterprise inevitably involves all kinds of financial risks in economic activities with the construction of the socialistic market economy progressed and increasingly complex social relations. Especially in today’s economic globalization and more complicatedly and diversified resource integration, the enterprise would be reshaped if there were a little carelessly unsettled financial risk. Basing on this background, it adopts quantitative method with financial risk management of Construction Engineering Company A (hereinafter referred to as Company A) to analyze the financial risk that will be arisen during operation management activities and then proposes to build a financial risk warning system for Company A, the purpose of which is preventing Company A’s financial risk accidents before they occur, and keeping the operating activities in a duration and stability. Meanwhile it hopes to have a reference for enterprise to prevent financial risk.This paper primary coverage:Firstly, it analyzes research’s background, purpose, significant, ideas, content and overseas and domestic research status. Secondly, it discusses the basic theory of financial risk warning system, starting with three concepts as financial risk, financial risk warning system and financial risk warning system of Construction Enterprise and introducing to financial risk warning system’s function, objective, environment analysis, factors and analysis method. Thirdly, taking Company A as example, analyzing the current status of its financial risk warning, including basic situation of Company A, current status of financial risk warning and existing problems and giving the necessity to build a financial risk warning system. Fourthly, it has a model construction for Company A and has a discuss on financial warning system from its building principle, preparation work and pick index, and selects F fraction model as a part of virtual testing system for Company A’s financial risk warning. Finally, analyzing and evaluating the established financial risk warning model of Company A and summarizing its advantages, disadvantages and improvement in application effects.The innovations of this paper is adopting integrative measure with construction trades feature to distribute corresponding weights to each warning index, and designing a financial risk warning system for Construction Enterprise and using F fraction model to test, and positive analysis to verify that the financial risk warning system is proposed on the foundation of scientific analysis and has some feasibility and operability.In the meantime, this paper just analyzes financial management problems, but not involves in other specific problems as enterprise’s administrative management, personnel management and other resources managements etc., therefore, it has some deficiency and possible erroneous judgement although the highly stability and credibility, which is also the big insufficient of this paper. It would be further expanded in content when time and resources permit and if that, it will be better for enterprise to control risk warning.