Research On Financial Risk Management Of Binjiang Group

In recent years,the pace of changes in China’s economic environment has become increasingly rapid,and market competition has also become increasingly fierce.The real estate industry itself is complex and diverse,coupled with the continuous adjustment of national policies with market changes,the financial risks faced by the real estate industry itself are becoming increasingly complex.If an enterprise lacks a strong understanding of its external environment and cannot accurately evaluate and prevent its internal financial risks,it is very easy to lead to a crisis in its financial situation,There is even a risk of corporate bankruptcy.In recent years,the real estate industry has been following the call of the country,implementing the policy of comprehensively deepening reform,actively implementing the country’s macroeconomic regulation in the housing sector,and adhering to the overall tone of "houses are for living,not for speculation".Moreover,the People’s Bank of China and the China Banking and Insurance Regulatory Commission proposed in the 2021 Real Estate Finance Work Symposium to "continuously increase attention to risk prevention in the real estate industry",And comprehensively implementing the "three red lines" of fund monitoring and financing management rules for real estate enterprises,the policies of the real estate industry will continue to maintain the "strict regulation pattern".In such a macro context,enterprises in the real estate industry urgently need to establish effective financial risk evaluation mechanisms and financial risk prevention measures to avoid possible financial risks as much as possible.Against the backdrop of the overall downturn in the real estate industry,Binjiang Group still dares to expand against the trend and acquire a large amount of land,undoubtedly causing significant financial risks that cannot be ignored,and also attracting widespread attention in the industry.Therefore,it is necessary for us to conduct in-depth research on the financial risks that exist,in order to strengthen the management of financial risks by Binjiang Group.The paper takes Binjiang Group as the research object and uses literature research,comparative analysis,and quantitative analysis methods to conduct research on financial risk management.Firstly,the relevant theoretical foundations were elaborated,mainly focusing on financial risk and financial risk management.Financial risk was introduced around the definition and characteristics of financial risk,and financial risk management was introduced around the identification,evaluation,and prevention of financial risk.The basic theories of financial risk management research were also mentioned,including capital structure theory,information asymmetry theory Stakeholder theory and balance theory lay the foundation for the subsequent analysis from the above aspects.Secondly,based on the analysis of financial statements,the financial risk identification of Binjiang Group was carried out.The identification results showed that there are five types of financial risks in Binjiang Group:financing,investment,operation,growth,and cash flow.Once again,a financial risk evaluation index system for Binjiang Group was established,and corresponding financial indicators were selected based on the five major risk classifications.The entropy method and efficacy coefficient method were used to evaluate the risk level of Binjiang Group from 2017 to 2022,and evaluation results were obtained for each year and category.Finally,based on the results obtained from identification and evaluation,it is proposed that Binjiang Group should take financial risk control measures such as adjusting its debt structure,conducting project feasibility analysis,and accelerating inventory sales,in order to provide reference suggestions for Binjiang Group’s financial risk control and provide reference for other companies in the real estate industry.