W Construction Enterprise Financial Risk Evaluation And Control Research

As a pillar industry in the development of China’s national economy,the construction industry provides a large number of employment opportunities for China’s labor market and plays a vital role in China’s economic development and social stability.At the same time,China’s construction industry has the characteristics of large mobility of labor workers,uneven technology and fierce market competition.In particular,in recent years,the construction cost of China’s construction enterprises continues to increase,the financing cost is high,the construction project payment is difficult,the economic environment of enterprises is more and more complex,many construction enterprises in the process of business financial risk is increasing.Therefore,how to evaluate and control the financial risk of construction enterprises has become an important research topic.This paper takes W construction enterprise as the research case,and follows the three-step method of identification,evaluation and control that is generally accepted by the academia to evaluate and control the financial risk.Firstly,this paper briefly introduces the development process,organizational structure,business and financial status of W Construction Company.Secondly,the financial risk index of W construction enterprise is identified from four main financial activities:financing,investment and financing,operation and cash flow,and the index system of financial risk evaluation of W construction enterprise is constructed.Then,it evaluates the financial risk of W construction enterprise by collecting relevant data of the enterprise and using factor analysis method and SPSS tool software.Finally,the paper puts forward the corresponding control measures for the financial risks.The research in this paper not only provides direct basis and theoretical reference for W construction enterprise to control financial risks,but also provides beneficial reference for China’s construction industry-related enterprises to prevent financial risks,which is conducive to promoting the sustainable development of China’s construction enterprises.