M Construction Enterprise Financial Risk Management

Nowadays,the process of economic globalization is getting faster and faster,and the links between international Markets are getting closer.The survival and development of construction enterprises face enormous challenges.The Market not only brings opportunities,but also risks.In this era,the financial risks faced by construction companies also increase.The occurrence of financial risks has hindered business operations,which has a lot to do with the characteristics of the construction industry itself(high liquidity,long construction period,huge capital investment).In terms of capital investment,financial risk is critical to the operation of the company.As a pillar industry of the national economy,the construction industry should pay more attention to the management of financial risks.If a company fails to carry out financial risk Management work in a timely and effective Manner,it will not only cause irreparable losses to the enterprise itself,but also lose its Market survival environment and capabilities,and even have a strong impact on the overall social economy.Therefore,financial risk is a focus of concern for construction companies.This article will use M construction companies as research cases to study its financial risks.The content of the article is divided into five chapters.The relevant theories of risk and financial risk management are introduced and sorted out,laying the foundation for the subsequent analysis process.Subsequently,according to the financial risk management process,the M enterprise is analyzed and researched,and the corresponding financial data and indicators are used to analyze the internal influence factors and the external macro environment.The AHP analytic method is also used.The financial risk of the enterprise is evaluated.According to the results of the expert scoring,the financial indicators are worth the financial risk,and the analysis results are basically consistent with the identified risks.The combination of risk identification and risk assessment can relatively objectively evaluate the current situation of M enterprises in daily operation and management,and accurately identify their inadequacies and existing risks.By combining the general characteristics of financial risks in the construction industry,this paper takes M enterprises as the research object,and identifies and analyzes the financial risks of M enterprises.First,M construction enterprises have short-term solvency and long-term solvency(assets).The higher the debt ratio,the company will face a certain degree of financing risk in the subsequent development.Second,the company’s low turnover rate of accounts receivable will make the company face the risk of default on funds and the risk that the funds will not be recovered and lead to bad debts.Third,the company has a prominent impact on financial risks due to the imperfect financial system,imperfect supervision mechanism,lack of scientific management of inventory and fixed assets,cost accounting and management philosophy lag.Then,based on the problems found,combined with internal and external factors,the corresponding solutions and optimization measures are given.It is hoped that these programs and measures can effectively prevent and solve the financial risks faced by enterprises,and at the same time can be other similar Enterprises bring lessons and references.