Study On Financial Risk Management Of Xinghong Construction And Installation Co.,Ltd.

In February 2017,The Office of State Council issued "The opinions on promoting the sustainable and healthy development of the construction enterprise”,and thepublic document points out that since the Reform and Opening-up,China's construction enterprise has brought a series of promotions oneconomic development.At the same time,it also proposed that although the scale of the construction enterprise is large,their strength is not strong.There are outstanding problems such as the low level of enterprise management,numerous non-standard construction markets,weak market competitiveness of construction companies,and low overall quality of employees.Under this premise,the public documentalso put forward the overall reform direction and reform measures to promote the sustainable and healthy development of the construction enterprise.In addition,The State has also issued a standardized guidance document for state-owned enterprises to carry out financial risk management,and small businesses attach importance to their internal and external risk identification.These movements fully reflect the state's requirements for the healthy and sustainable development of the construction enterprise,and try to build a "China Built" brand.In the development of China's urbanization,infrastructure,"The Belt and Road Initiative" policy,the construction industry has a rapid development speed.The construction industry`s value added of the whole society in 2017 was 55689 billion yuan,up by 4.3% over the previous year.The national quality contract and professional contracting construction enterprises have achieved 766.1 billion yuan,up 9.7%.The state-owned holding enterprises achieved a profit of 231.3 billion yuan,and increased by 15.1%.However,under such a joyful scene,it can`t be neglected the problems of project cost management and financial management in the development of private construction enterprises in China,especially the financial risks problem.Financial risk is not suddenly formed.It is accompanied by the continuous aggregation of related factors in the process of enterprise operation.The competitive advantage of technology and equipment for construction enterprise has gradually disappeared as technology matures and equipment been standardized.If the private construction enterprises want to maintain a healthy and sustainable developmentnow,it is necessary to see whether it can control the financial risk effectively in an all-round way,and it is necessary to see whether it can proactively prevent risk,identify risk and prevent risk.If the construction enterprises can accurately grasp the change of their own factors which can cause the financial risks,they can identify the financial risks they may face in advance.And if it can be detected and processed before its development can`t be unbearable,it will not be too serious for the enterprise.Therefore,as long as a building enterprise can establish good financial risk management framework and system,it will achieve healthy and sustained profits and it also canachieve the real healthy development.This paper takes Tai'an Xinghong construction and installation Co.Ltd as the research object,analyzes the current situation of this enterprise`s financial risk management.And then this paper analyzed and measured the financial risk.Finally,some measures are put forward to suit this enterprise.At the same time,we hope that through a case study on Tai'an Xinghong can help other construction enterprises to improve theirfinancial risk management consciousness,and they can pay more attention on financial risk identification.Only by doing a good job,can we ensure the healthy and stable development of the enterprises.