The Research On Financial Risk Identification And Control Of A Group

Identification,measurement and control are the three key aspects of the theory of financial risk management.Identification is not only the first but also the most important step of the enterprise financial risk management.A Group is a newly established four-year state-owned real estate listed companies,located in Yunnan.Benefit from the industry high speed development in recent years,it grows exponentially,but still has a big gap with China's top ten real estate.Recently,due to funding constraints it outbreaks some problems.In 2012,real estate companies are seeking to create core competitiveness,in Yunnan market the competition further intensified,in the face of challenging market conditions and the ubiquitous risk,how Group A accurately identify the financial risks,as well as how to effectively control it is very important.Therefore,research on A Group is be of representativeness and practical significance.This paper adopts the method of case study,on the basis of the fully draw on the useful experience of the risk identification and control of domestic and foreign financial,starting from the actual situation and the business strategy of the enterprise group A,the use of financial ratio analysis method on the financial risk of the Group A,a comprehensive and detailed identification to identify potential risk areas.Meanwhile,in view of the traditional financial data analysis can not comprehensively reflect the overall financial risk profile of the defects,the use of Z-score financial risk early warning model of the A Group's fiancial risk profile was evaluated.Finally,the group's future development strategy,the group has put forward a series of risk control measures.Contents:This paper is composed of six chapters.In Chapter 1,research backgrounds and its meanings are introduced,and then the relevant domestic and foreign enterprises are reviewed,Based on this,the research ideas and framework are formatted.In Chapter 2,to lay a theoretical foundation for subsequent chapters,we firstly introduce the basic theory of real estate corporate financial risk,including the definitions,kinds,causes and conducted mechanism of the financial risk,and then elaborate the relevant theoretical knowledge of financial risks identification and control.In Chapter 3,the development of A group will be introduced,including ownership structure,corporate.governance structure,achievements and major real estate projects.Then,combined with the analysis of the current external macroeconomic environment and operation strategy,A group's SWOT(Strengths,Weaknesses,Opportunities,and Threats)is obvious.In Chapter 4,this article first aims to explore the potential financial risk in A Group from the perspective of internal capital cycle,and then in-depth study of the causes of the financial risk.Finally use the Z-score pre-warning model to evaluatethe status of A Group's financial risk.In Chapter 5,we make some recommendations to better the control of A Group's financial risks on the basis of the above chapters.In Chapter 6,the summary and outlook of this paper is presented.Conclusion:(1)The enterprise development strategy is guiding the development of enterprises;financial risk identification needs to take account of the impact of it.Through the analysis of internal and external environment in A Group,the paper pointed out the current situation of A Group,the macro environment and industry status;combined with A group own competition advantage and inferior position,the paper use the SWOT analysis method on the development strategy of the group to do a brief evaluation,the aim is to lay the foundation for financial risk identification.(2)A comprehensive,objective,scientific identification of enterprise financial risk play an effective role in the risk trend monitoring,but also for the subsequent financial risk control points and control key.This paper from the perspective of the main financial activities,i.e.,financing,investment,operation and profit distribution,uses financial statement analysis method to identify financial risk to find its causing.At the same time,the Z-score model is used to evaluate the overall financial risk status;enterprise managers can more intuitive grasp of the overall situation of company financial risk.(3)The enterprise financial risk control is the powerful guarantee to ensure the successful implementation of enterprise development strategy.To make measures of financial control,it should base on the financial risk identification,and combine with enterprise development strategies.