Based On Risk Orientation On Corporate Financial Risk Of Real Estate

Since2003, our country economy has increased substantially, the real estateindustry has a rapid development with the development of macro economy, realestate enterprises also have sprung up. Since2008, the country has conducted a seriesof macroeconomic regulation and control according to the real estate industryoverheating problem. From the “country five” to “country eight” and the “newcountry five”, each policy implementation has an effected to cool down theoverheated real estate industry. As the country cooling down the property market, thefinancial risk of the real estate enterprises has increased. In the year of2003, Beijinghas473real estate enterprises cannot apply for business license cancellation.According to a report of Wuhan housing management, Wuhan registered real estateenterprise has reduced nearly15.4%. According to a report of Sichuan housingmanagement, Sichuan has423real estate enterprises can’t continue formalities andcancel the qualification. As a result, under the background of the macroeconomicsituation fluctuating and national regulatory policies introduced gradually, real estateenterprises want to have an impregnable position in the industry; real estateenterprises should have a clear understanding of the environment and pay moreattention to financial risk of the enterprise about effective early warning andprevention and control. This is not only for the steady development of real estateenterprises can maintain the premise, but also to investors, government authoritiesand banks and other financial institutions to get accurate financial information.Most paper on financial risk early warning of the real estate industry, most ofthe scholars are standing in point of view of the enterprise and doing research on realestate companies risk warning and risk prevention only considering the possible riskswithin the enterprise without fully considering the impact of fluctuations in externalfactors on corporate financial risk Based on this, this paper analyzes the real estateindustry from the features and characteristics of real estate corporate finance. This paper focuses on the important factors that led to the financial risk of the real estatebusiness. This paper makes a detailed analysis on the mechanism of the financial riskcombined with the changes of the external environment. Based on financialindicators and non-financial indicators, this paper has designed leading indicators,coincident indicators and lagging indicators. This paper uses factor analysis methodcalculating leading indicators, coincident indicators, lagging indicators andcomprehensive screening. Based on the comprehensive early warning indicators, thispaper determines the value of the size of the enterprise belongs to the police. Finally,based on the risk radar as Figure locate the specific sources of risk and businessimpact factor greater variables have focused on the factors that produce sexual riskprevention and control of financial risks, select the appropriate prevention andcontrol paths.