Research On The Financial Risk And Control In Guangyuan Real Estate Development Group

As the leading of multiple industries in northeast area, Guangyuan group is a privateenterprise group, that has developed under the background of growing economic globalizationand continuing to mature of our country market economy system for nearly20years. Mainbusiness of Guangyuan group relates to industry chains including the production of buildingmaterials, real estate development and construction and installation. After years ofdevelopment, Guangyuan has accumulated abundant capital and mature business model. Withmore mature of business environment, ever-changing economic situation and changing of thebusiness environment in the adjustment of economic structure, Guangyuan group is facing theincreasing financial risks in the business development. Because the financial activities coverthe full range of all business activities of the enterprise projects, and the financial riskthroughout all the links such as enterprise financing, investment, production, and technicalsupport and renewal, with the enterprise development, financial risk is the core risk facing.The real estate industry has made a spurt of progress in the twenty years of development. Withthe development of the rapid expansion of the industry scale, the risk is also gradually pushedup, so how to manage and control financial risk is a key problem for the sustainabledevelopment of enterprises.Under the background, this paper summarized the financial risk of the real estateenterprises of the Guangyuan group by using the method of comprehensive analysis and putforward coping strategies. Beginning from summing up the domestic and foreign enterprisefinancial risk theory, combined with the development mode of China’s real estate industry, thepaper analyzed the financial risk control status of the industry and reasons of the existence.Because of large capital, project production cycle of large span and longer liquidation time ofreal estate enterprises, it’s easy for the operating results, financial goals and expected riskreturn to deviate from the initial set of plans, and vulnerable to format the financial blackhole.How to grow and continue the sustainable development in the long period of productionand management and how to control financial risk reasonably is the key faced by real estateenterprises. This paper summed up the internal risk factors and financial risk control problemsof Guangyuan group, put forward to the methods of strengthening the group’s financial riskcontrol effectiveness. The establishment of financial risk early warning system, which can enhance enterprise vitality and competitiveness, can enrich and deepen the theoreticalresearch on corporate governance, internal control, risks management and so on. Financialrisk control measures from three aspects of financial risk avoid, financial risk transfer andfinancial risk mitigation, and in which specific means to enhance the competitiveness ofenterprises, were proposed.