The Financial Risk Assessment And Research Of HC Construction Group Subsidiary Companies

In recent years, the development trend of the construction industry presents the high speeding state. And the output and total profit of construction industry in the whole society are still keeping on increasing. Although construction industry presents a high-speeding development, there are some financial risks due to the impact of the macro and micro factors. If these risks are not found as early as possible and are not resolved timely, it will become to a financial crisis, influencing the development of construction enterprise dramatically. Therefore, the financial risk evaluation and prevention of construction enterprises has been a key issue in the development of construction enterprises.The article introduces the concept of risk and financial risk and explains the theoretical basis of financial risk management. It also explains financial risk early warning and prevention of construction enterprises, which has a vital theoretical and practical significance to the enterprise risk prediction and prevention. In the first place, the article presents the basic situation of HC construction group established on the theory of enterprise financial risk early warning. Secondly, it analyses specifically the performance and cause of financial risk of HC construction group from the country’s macro-control and internal-control. Thirdly, it selects financial indicators in terms of financing, investment and operation for the industry characteristics and the facing risks of HC construction group’s subsidiary companies and builds financial risk evaluation model of HC construction group by using improved efficacy coefficient method. Then, it carries out a research by selecting 14 subsidiary companies and analyses the results. Lastly, it presents the prevention measures of the financial risk of HC construction group from its own risk control system, cost, contracts and constructing security established on the foundation of the analysis of performance and reasons of financial risk and financial risk early warning empirical research.