Research On Financial Risk Analyzing And Control Of Z Construction Company

The construction industry is a high risk,a wide range of branches,long construction cycle and strong liquidity industry.In recent years,throughout the production cycle,the construction industry has irregularities in bidding,padding undertake the project,lowering prices,requesting kickbacks and long-term project arrears.Similarly,in the financial structure,there is a phenomenon of high debt-to-asset ratio,high claims and debts and high non-performing asset ratio.The financial risks of construction enterprises are more and more serious.In order to survive and develop in such a harsh environment,It is very necessary to establish and improve the risk assessment mechanism and improve the ability of risk management and control.To develop and perfect the financial risk control of construction enterprises is the research goal of this paper.This article uses the methods of case analysis,inductive method and deductive reasoning to study the financial risk of construction enterprises.First of all,this paper clarifies the purpose and content of the research,makes a clear direction for the dissertation research,analyzes the theory of financial risk and reviews the related literature of financial risk analysis and control.Then it expounds the financial risks peculiar to construction enterprises,uses AHP to identify the main risk points in the construction industry,and finally draws the key risk factors that restrict the development of construction enterprises.Then it analyzes the problems existing in the key risk points of Z Construction Company and finds out the problems such as the high proportion of accounts receivable and inventory of Z Construction Company,the low profit margin of cost and expense and the uncontrolled payment of funds.Finally,four risk control measures are proposed for the financial risk of Z Construction Company,namely the management and control system of the entire process of accounts receivable and inventory pressure drop,the establishment of a cost management system,the establishment of a fund management system and the optimization of the organizational structure of the financial management of the Company.Through the above control measures to reduce the financial risk of Z Construction Company,Z Construction Company finally realized the great development in the industry,stood out and achieved a new leap forward.