A Study On Financial Risk Management And Control Of Construction Enterprises

Enterprise financial risks,in general,are featured with latency as well as explosiveness,and will cause ripple effects.It has been a long-term concern for both business and academia to effectively identify,manage and control the risks and thus provide assistance for enterprises to achieve sound and rapid development.Currently,the study of financial risk management and control is still in the primary stage in China,and the vast majority of domestic companies also lack effective means for financial risk management and control in their operations.China has witnessed a long period of rapid growth since the reform and opening up in 1978.Yet at the same time,hidden risks are on the rise as the booming of various enterprises.In recent years,with China’s economy entering the phase of a new normal,the growth in GDP slows down.Government’s attentions on economic growth shift from speed to quality and efficiency.Meanwhile,internal controls especially financial risks management and control issues have arisen in part of enterprises,bringing continuous turmoil and attacks to the domestic capital market.Construction enterprises play a pivotal role in China’s national economy.But it’s problems of extensive management and inefficiency still persist,combined with generally weak level of financial risk management and control.From a nationwide perspective,financial risks management and control issues become more out-stood owning to the yearly declines of the infrastructural investment and the more intensive competitions the construction enterprises faced in recent years.This article mainly studies on how to build a scientific and rational risk control system to better realize the effective management and control of financial risks,enhance the enterprise’s own capacity to respond to risks,and then ensure the more stable development of the construction enterprises.The article takes a typical enterprise in construction industry—A enterprise as the research object,and probes into its financial risk management and control status in the perspective of internal control,in an attempt to deeply analyze the common issues in financial risks management of similar enterprises in China,including the weak awareness of management layer on financial risks,poor ability to identify the financial risks,lacking of controls over financial risks and poor communication of the information department.Based on COSO internal control theory,the author puts forward the solutions to strengthen enterprise financial risk management,thereby improving the internal control level,preventing and controlling various risks,and continuously strengthening the financial risk management ability of A enterprise.This article can play a certain guiding role in the financial risk management and control of A enterprise and be a reference for the same type or other construction enterprises.