Research On The Financial Risk Assessment And Control Measures Of BL Real Estate Company

In currcnt market environment,real estate business is not only an important project involving people's livelihood with our country's continuously deepening reform,but also a focus of public attention.The rapid and comprehensive development of real estate industry has moved forward the step of urban-rural integration and has driven the growth of some related industries.The real estate industry has also absorbed surplus labor forces to some extend and optimized the allocation of overall social resources.However,even though the real estate industry holds such an important position,under our country's transformation of macro economy in a critical period and the deceleration economic development,the market has come out of the "Golden Age" of ten years' rapid growth and has entered a "Silver Age"-being stable is the predominant theme.What comes along with the change of overall situation are the implementation of some regulation policies,such as "purchase and loan lirmitation","sales limitation","rent and sell simultaneously" and "destocking",which have posed some difficult challenges to real estate industry as well as the managers and investors of property companies.Under such a complicated and ever-changing environment,managers need not only to understand the financial condition of the company,but also to dig further into the financial data and get a grip of underlying risks.Through scientific measures,managers in the real estate sector should be able to identify,evaluate and control both the existing and potential financial risks in a reasonable and effective way,because it is critical to ensure a long-term healthy development for real estate companies.Based on some practices in today's economic situation,this paper selects BL Real Estate Company,a listed real estate SME in its period of market expansion,and learns from its financial risks.The paper begins by introducing the research background and the purpose of this study,and summing up the most recent research findings concerning financial risks all over the world.It goes on to set forth the definition of financial risk,as well as its features,categories,and related theories.After briefly introducing the basic situation of BL Real Estate Company,we will select corresponding financial data and indicators from the perspective of the capital cycle movement,identify the financial risks of the BL Real Estate Company in terms of financing,investment,operation,and income distribution,and analyze the causes of risks.Then,combining with 20 sets of quarterly financial data released by BL Real Estate Company from 2012 to 2016,we select a number of financial indicators that reflect its profitability,solvency,operating capacity,growth capacity and cash flow,and use factor analysis to construct a financial risk assessment model for BL Real Estate Company,aiming to evaluate the financial risks of the past five years.Finally,according to the actual results from the financial risks identification and evaluation conducted before,we propose some appropriate and practical control measures as recommended solution for BL Real Estate Company and other real estate listed companies to prevent and control financial risks.