Research On Financial Risk Management Of Z Construction Decoration Company

In recent years,China’s economic development has achieved remarkable results,the real estate construction industry has always played a mainstay role in the economy,and the building decoration industry has also shown great potential for development.At present,the construction decoration industry in China has a large market scale and a clear development trend,but the concentration is low,and the characteristics of "big industry,small company" are significant.Private companies account for more than 95%of the industry,and the competitive environment is extremely fierce.Due to the small scale,low level of professional technology and weak awareness of risk management,these private companies have great financial risks.This paper selects Z Architectural Decoration Company as the research object,identifies and evaluates the financial risks of the company,and provides corresponding control measures and implementation guarantees.Firstly,the literature on financial risk at home and abroad is summarized and evaluated.Then the concept of financial risk and the process of financial risk management including identification,evaluation and control are expounded.In the link of financial risk identification,this paper selects the four aspects of debt repayment,operation,profit and growth proposed by scholars such as Chen Wenjun in 2005 for identification.In the link of financial risk evaluation,this paper selects the analytic hierarchy process,through sorting out the scoring results of experts,analyzes the identified four aspects of financial risk and obtains the impact weight results.In the link of financial risk control,this paper puts different degrees of emphasis on the four identified financial risks according to the evaluation results,respectively puts forward corresponding and specific financial risk control measures,and then puts forward the implementation purpose and principle,plan,key and difficult points.At the same time,it puts forward the guarantee methods from the four aspects of concept,capital,talent and system.With the turbulence of the international situation,the constant fluctuation of the commodity market,and the slow economic recovery,the building decoration industry is affected by the risk exposure impact of some real estate customers,intensified market competition,material and labor costs rising year by year and other factors,the operation and development is facing major challenges,and the financial risks are constantly exposed.This paper hopes to help Z Company find out the most serious existing financial risk management problems from the perspective of identification,evaluation and control of financial risks,and take good control measures and guarantees to prevent possible financial risks.At the same time,it can provide reference and reference for other private companies in the building decoration industry to optimize their financial risk management.