Research On Financial Risk Management Of SH Construction Company

SH construction company as a private construction enterprises,now is facing many challenges posed by an increasingly competitive market environment,how to effectively improve the level of its financial risk management will be directly related to its development in the future.However,as for now,there are still some shortcomings in its financial risk management,such as lack of systematicness in the process of financial risk management and the current method used to measure financial risk is inappropriate.Therefore,this paper chose SH construction company as the object of study,looking forward to improving the level of financial risk management and enhancing the ability of resisting financial risk of SH construction company.This paper is Based on the theory of financial risk management.Firstly,current situation of financial risk management of SH construction company is presented,and then its deficiencies are identified and analyzed.Secondly,financial indicators that were used to recognize financial risk are selected by Pearson correlation analysis of historical data.Thirdly,the financial indicators are classified as funding risk,investment risk,capital recovery risk and income distribution risk,the model based on modified Efficacy Coefficient Method is built to measure and early warn financial risk,the latest data of SH construction company was applied and the result was amply analyzed.Finally,according to the practical situation,some suggestions are proposed to cope with current financial risk of SH construction company in two ways of technical and institutional strategy.This paper aims at seeking the optimal pattern for the financial risk management of SH construction company,helping improving its efficiency and effectiveness,managing financial risk more scientifically,promoting healthy and rapid development.Moreover,the system of financial risk management built in this paper has a certain reference significance for the private construction companies whose financial situation is similar to SH construction company's.