Research On The Financial Risk Identification And Control Of The Construction Industry

The construction industry is a very important part of the economic system of our country,and the number of industries associated with it is large,and the correlation between them is high.In the process of building a new countryside and a well-off society in China,the construction industry accounts for an increasing proportion of the gross national product,providing tens of millions of jobs to the whole country every year.It has a great impact on the quality of life of the people,especially on the improvement of the quality of life of rural residents.Since the reform and opening up,with the prosperity of the national economy and the support of related policies,the domestic construction industry has also been well developed.However,under the influence of internal and external factors,such as the increase of industry participants and the defects of enterprise management,the construction is caused by the increase of industry participants and the defects of enterprise management.The financial risk faced by the construction enterprise is gradually increasing.Taking into account the important position of the construction industry in the national economic system,this paper studies the financial risk of the industry and makes an analysis with the A-construction company as a specific case.This paper summarizes the financial risks of the construction industry from four aspects.First of all,the basic situation and development status of the construction industry are described and the common financial risks in the construction industry are summarized,and it is concluded that the main risks are financing risk,investment risk,operational risk and so on.Secondly,the causes of all kinds of risks in the construction industry are summarized and analyzed.Thirdly,select the appropriate financial risk identification method,through the analysis of the applicability of each identification method and the construction industry,and finally use the financial index analysis method,cash flow analysis method as the construction industry financial risk identification method;Finally,the corresponding reasons for all kinds of risks are put forward.Risk control strategy.Taking A construction company as an example,this paper makes a concrete study on the financial risk of construction industry.First of all,the financial risk identification method mentioned above-financial index analysis,cash flow analysis method is applied to the company’s financial risk identification,it is found that the company has short-term solvency deficiency,debt financing risk is too large in a short period of time;The previous investment can not get an effective return,the investment risk is large;the inventory turnover is too slow,the fund recovery is difficult,the cash flow fluctuates greatly,the financial conservatism is poor and so on.Secondly,through combing various factors,it is concluded that the main reasons for these risks are the unreasonable financing structure of Company A and financing.The method is too single;the profit space is overstocked,the profit ability is too weak;the stock settlement sales are too slow and the backlog is serious;and the investment is not made according to the actual situation,and the investment decision is too radical.Finally,the paper puts forward the suggestion of risk control to optimize the long-term debt structure,expand the diversification fund-raising channel and disperse the financing risk,strictly control the engineering cost,improve the project profit and reduce the investment risk.Accelerate the measurement and settlement of the completed unsettlement project and the sales of the completed real estate project,reduce the inventory of the inventory,reasonably plan the scale of investment,avoid the chain of funds and improve the financial stability.