A Study Of YN State-owned Construct Group Of Finance Risk On Internal Control

Since the reform and opening up,China has carried out many legislative actions and reformed market mechanisms,and gradually established the important market position of China’s real estate market and construction industry.Especially after 2003,the rapid rise of China’s real estate market has promoted the continuous and rapid development of construction industry.After 2008,affected by the global financial crisis,the Chinese government launched the Four Thousand Billion Stimulus Plan,which included speeding up the construction indemnificatory housing project for low-income families,speeding up the countryside infrastructural facilities,speeding up the railroad,the road and the airport and so on significant infrastructural facilities and so on.China’s construction projects are increasing,which brings huge development space to the construction industry and makes competition among enterprises more intense.The construction industry itself has the characteristics of large investment scale,low profit margin and fierce competition.However,with the increase of engineering projects and the increase in the number of construction enterprises,the competition among enterprises is more intense.Due to the construction industry’s customization of construction materials,long development cycle,and scattered project management,construction companies are also facing more risks,of which financial risks can be said to be the primary face.Faced with a variety of external uncertainties and inherent risks,companies often design a number of control and monitoring activities throughout the business process to ensure that the company achieves its stated goals.These designs and activities are collectively referred to as the internal control of the enterprise.Continuous and sound internal control mechanisms are an effective way for companies to prevent,detect and correct financial risks.Based on the "new normal" of China’s economic situation in recent years,this paper has a large background of the state’s macro-control of the real estate industry,and combines a number of policies such as "de-stocking","supply-sidestructural reform" and "business reform".Implementation,research on the financial risks faced by construction companies,and recommendations for improvement based on the current internal control system have important theoretical guidance and practical reference.This paper selects the YN state-owned construction enterprise established in the southwestern border of Yunnan Province as the research object of the case study.Yunnan YN State-owned Construction Company is the first special contracting enterprise for construction contracting in Yunnan Province,and its development in Yunnan Province can represent The epitome of the construction industry in southwest China.As a state-owned large-scale construction enterprise with leading scale and advanced technology in Yunnan Province,YN’s financial risk problems in the new economic situation and policy environment can represent the construction enterprises in southwest China and even the whole country to a certain extent.Therefore,through the analysis of the financial risk of YN state-owned construction enterprises,and the targeted internal control system,it puts forward targeted opinions,and hopes to give some inspiration to the current construction enterprises based on internal control financial risk management.effect.This paper is divided into five parts to study the financial risk management of state-owned construction enterprises.The first chapter is the introduction of this paper.It introduces the research background of this paper from the perspectives of real estate industry and construction industry,determines the research methods and research themes,and expounds the significance and shortcomings of this paper.The second chapter summarizes and collates the research on internal control and financial risk at home and abroad,and summarizes the relevant theories and concepts of internal control and financial risk,which lays a theoretical foundation for the research of this paper.The third chapter analyzes the causes and types of financial risks of construction enterprises,and finally outlines the risk identification,risk assessment and risk control in financial risk management of construction enterprises.The fourth chapter goes into the case study section,first introduces the general situation of YN state-owned construction company,and then focuses on the internal and externalfactors affecting the financial risk of YN state-owned construction company.Then,by determining the indicators of financial construction risk assessment of a construction company,the financial risks of YN state-owned construction companies are analyzed and summarized.Based on the quantification of financial risks,this paper studies the internal control processes and activities related to the payment and procurement process,bank account management,collection and sales process financial focus of YN state-owned construction company.Based on the previous research,the fifth chapter puts forward the financial risk control strategy of YN state-owned construction company based on internal control.Firstly,it analyzes the target of financial risk control of YN state-owned construction company,and then puts forward the specific control strategy of financial risk of YN state-owned construction company,including: further improving the company’s fund raising mode,establishing and improving the company’s internal professional risk management and control platform,and strengthening the project.The cost control process management and control,and the establishment of relevant systems for strengthening the company’s financial risk management.