Research On The Risk Management Of TY Real Estate Company

The current economic growth slows in domestic and foreign, moreover, the growth rate of trade drops. China's economy not only is facing with the major strategic opportunities in the new situation, but also is confronted with the pressure of economic downturn and risk increase. The real estate industry, which had been regarded as the source of economic overheating, becomes a regulator for stabilizing the economic growth again. However, the financial risk hides behind the prosperity of real estate industry. Because of the complex economic background, the characteristics and the current stage of real estate industry, the real estate industry is facing an enormous risk. The risk has repeatability and cumulative superposition, due to the real estate industry has the following characteristics: long project cycle, large amount of investment, investment objects are immovable and have special needs, and a lot of stakeholders. Once the risk erupts, the individual enterprises will have disastrous consequences, and the security of investors' assets will have a great loss also. This will even endanger the whole industry's development and the stability of domestic economy. Therefore, we should pay attention to prevent the risk's outbreak.Based on the domestic and foreign experience of risk management, this paper takes TY Company as the research object, to explore the types of the real estate operational risks, the status quo and effect factors as well. This paper combines the theory and case analysis, qualitative and quantitative analysis. Furthermore, the factor analysis, data analysis and chart analysis are used in this paper, to have a comprehensive and objective understanding for the real estate business in both theory and practice. This paper discuses six types of risks in the real estate operating activities, such as policy risk, market risk, production risk (project process risk), debt risk and personnel risk. In the process of risk analysis, the financial situation as TY Company's real operating results and risk's eventual virtual embodiment, this paper uses comprehensive analysis to assess the financial indicators. In this way, we could evaluate the existing risk issues and predict potential risks. At the same time, this paper pays attention to the external factors which affect TY Company's operational risk, such as macroeconomic regulation and control policy, economic and social development, market structure, technology, etc. In the meanwhile, this paper also analyses the internal factors' influence for operating risk in these fields:the company's internal environmental governance, strategic planning, business process and the communication of information. On the basis of the analysis above, this article proposes many risk control methods to maximize the profit for a company.The risk management has the theoretical and practical significance for the real estate enterprises in our country. The enterprises should build a reasonable, efficient and sound internal control system, to raise the level of risk management.