Research On Financial Risk Of Engineering Projects

Financial risk is a special form of risk expression. It cannot be altered by thewishes of business owners, and it occurs during the entire production and operationprocess of the company. As Chinese companies, especially large state-ownedenterprises, continuously deepen international strategies, these companies are in amore complex and unpredictable internal and external environment. The existence ofuncertainties demands higher requirement of corporate financial risk management.Enterprises must fully understand that the uncertainty of risk can bring not onlyprofits, but also a big lose or harm to the foundation of the enterprise. Therefore,enterprises should actively manage the risk that they confront.This article will discuss the basics of why enterprises need financial riskmanagement, and how to manage, combined with various financial risks that militaryresearch institutes face in research, production, and management activities, andconcentrate on the identification of financial risk, measurement and analysis offinancial risk, and control and resolution of financial risk. This article will use thecase of a military research institute undertaking large ground equipment for externalcompany as an example to analyze the current situation of financial risk managementof military research institutes facing marketization and internationalization, proposesuggestions to the current financial risk management system, solve the outstandingproblems and weak parts in the development, and provide theoretical support for theenhancement of military research institutes’ ability of management and financial riskmanagement control.