Research On Financial Risk Management Of Group E In The Context Of Diversified Transformation

The real estate industry has ushered in a structural change in the industry against the backdrop of several tightening policies,beginning to shift from the "silver" era to the "black iron" era.Through an in-depth analysis of China’s housing demand,population growth and the development of the real estate industry,it is easy to see that the emergence of the industry’s inflection point and the current "pain" in the industry are not simply the result of national policy restrictions and tightening,but the necessary path of development.As a result,real estate companies are embarking on digital and intelligent strategic transformation to meet the needs of the market,and Group E,the subject of this article,is no exception.However,strategic transformation involves both risks and opportunities,and successful diversification requires sound and effective financial risk management,so it is valuable to study financial risk management in the background of strategic transition of real estate enterprises.Based on this background,this paper takes Group E,a real estate head company,as a case study.After a wide reading of domestic and international literature and collection of relevant information to clarify the concepts of diversification strategy and financial risk management,and to explain the theoretical basis on which it is based,against the context of the new normal development of the real estate industry,the current situation of diversification transformation and financial risk management of Group E is taken as a point of departure.The paper also explores the causes of these financial risk and management problems,with a view to gaining insights and exploring ways to improve financial risk management in the context of diversification.Finally,by summarising the research results,this paper finds that the development of E Group’s main business is limited due to policy regulation and neglect in the context of diversification and strategic transformation,as well as the internal and external reasons such as poor diversification performance and limited financial risk management,which together cause the continuous expansion of Group E’s financial risks in the process of diversification and development.Therefore,this paper proposes feasible and practical measures to improve financial risk management,such as optimising capital structure,focusing on investment feasibility analysis,integrating and coordinating major industries,improving financial risk management systems and scientifically forecasting market trends,taking into account the characteristics of the real estate industry and the real situation of Group E.At the same time,this paper aims to enrich the relevant case materials through the analysis of financial risk management in the context of Group E’s strategy of diversification,and provide some reference for the consideration and direction of financial risk management for real estate enterprises and other enterprises in the transition and development stage of diversification strategy.