The Early Warning Research Of Financial Risk Of Vanke Group

Currently, as a pillar industry of national economy, the real estate industry is in the process of vigorous development. The property of high-risk and high return determines that risk management must be placed on the core of financial management. Coupled with an increasingly competitive market and increasingly more stringent housing policy in recent years, enterprises will be flooded by the wave of risk if they can’t effectively monitor the financial risk. Therefore, the establishment of effective early-warning system has an important practical influence on the enhance of enterprises’strength.To the real estate business, effective financial early warning system can capture the potential risks, prejudge the occurrence of enterprise risk and pass the risk signal to the managers timely before the financial risk changing into crisis.Starting from the economic theory of early-warning, by summarizing and analyzing the theory knowledge related to financial risk early warning, this paper takes Vanke for example and analyses the current status and problems of financial risk early-warning system. On this basis, the paper proposes a series of recommendations to improve Vanke Group’s financial risk early-warning system. Including establishing a sound financial risk early-warning framework, establishing the short-term financial risk early-warning system which puts cash flow at the core of the system and establishing a multi-dimensional long-term financial risk early-warning system. The final purpose of the article is to establish a real-time monitoring system, so as to continuously improve the enterprise’s financial risk early-warning system and eliminate financial risk in the bud stage.