Research On Financial Risk Management Of H Real Estate Company

Real estate is an indispensable part of China's modern market economy.Since its development,it has been one of the important pillars in China's national economy,and its development directly influences the harmonious and smooth operation of our modern society.However,the abundant money and resources invested into the real estate market in recent years have led to the bubble burst of the real estate market and thus caused the huge hidden financial crisis whilst the rapid development of real-estate industry.In addition,the advent of the global economic integration has accelerated the number of foreign capital and enterprises going into China's real estate market,which has further intensified the competition among real estate enterprises.Meanwhile,the uniqueness of the real-estate industry,as well as China's macro policies and the adjustment of financial policies have led to the further deterioration of the real estate enterprises' survival environment.Therefore,strengthening financial management and controlling the financial risk has become the top priority of management for local enterprises.However,compared with well-developed real estate enterprises in foreign countries,the majority of domestic real estate enterprises are weaker in terms of the consciousness and ability to prevent financial risk,besides,their capabilities in the financial risk forecast and control is comparatively poor,and these led to a series of financial problems and leaves hidden trouble for the sustained and healthy development of the real estate industry in our country.For this reason,this paper analyzed the characteristics of financial risks and the possible reasons in the domestic real estate enterprises proposed a research model matching the financial risk identification with the hope to promote domestic real estate enterprises' risk management ability.Based on related theories and previous studies,the current study introduced research background,research significance,reviewed and summarized the domestic and international researches on this topic.This study is mainly divided into three parts.The first part introduced the background of H Company in terms of its financial risk,current problems,and reasons for risks.The second part of this article identified the index reflecting enterprise growth,operation,profit,cash flow,and debt,through literature review.Besides,by using Z-score model,this chapter evaluated enterprise's financial risk and build a financial risk management system.The third part elaborated the practical implication of the financial risk management system in H Company.The evaluation and revision were also conducted.Moreover,this part further proposed some constructive suggestions regarding risk management to help H Company avoid financial risk.The change of the financial situation of real estate enterprises is a gradual process which neither involves the sudden outburst,nor without any warning sign.Its occurrence is usually accompanied by capital operation and exists in the whole process of enterprise production and management.Therefore,in order to have a sustained healthy development,the real estate company should have a comprehensive risk management in the whole process of enterprise management...