The Research On Financial Risk Control Of A Real-estate Company

Financial risks, which as a symbol of enterprise crisis affects profit, survival and development ability of the company. Recently years there are many enterprise failure are resulted from financial crisis, especially in the real estate industry, which has the financial safety index is only half of the other entity economic industry, therefore, in the changing economic environment, it is so important to a real estate company to strengthen its financial risk control ability.Based on the theoretical analyses, firstly, this paper take the real-estate developer A as an example to analyze its financial data and typical financial metrics and to identify its current financial risks. Secondly, according to the characteristics of the real estate industry, both the exterior and interior factors are found out which cause the financial risks of this company, and then apply the synthetic evaluation model to appraise its financial risks, leading to the result that the firm faces light financial risk, which is needed to be controlled. At last, this paper tries to give suggestions to strengthen its control and prevention on financial risks around the following aspects:financing activities, investment, overall budget, cost management, construction of control system and improvement of control environment, which is hoped to provide references for financial risks control in real-estate enterprises during their growing stage.