Identification And Assessment Of Financial Risks In Small And Medium-sized Real Estate Projects

The development of the real estate industry,which plays a pillar role in the national economy,is unprecedented.With the development of China’s urbanization construction,small and medium-sized real estate projects are now blossoming in all the large and medium-sized cities,and gradually play their irreplaceable role in the real estate market.However,there are many financial risks in small and medium-sized real estate projects due to their weak strength and poor ability to resist risks.However,with the tightening of various policies of the Chinese government on the real estate industry and the restriction of the bank loan system,the development and survival difficulties of small and medium-sized real estate projects become more prominent.Therefore,it is urgent to identify and evaluate the financial risks of small and medium-sized real estate projects and put forward corresponding countermeasures.Firstly,this paper describes the current situation of the real estate industry and the domestic and foreign scholars’ research on the financial risks of small and medium-sized real estate projects,and puts forward the significance of risk research according to the current situation.Secondly,it describes the concepts and characteristics of risks,financial risks and small and medium-sized real estate projects,and puts forward the characteristics of current financial risks of real estate projects in China,which provides theoretical basis for this article.Then it lists various methods which are often used for risk identification,according to the actual situation,we choose the financial statement analysis method to identify the financial risk of small and medium-sized real estate projects.Then,this paper lists the commonly used risk evaluation methods,and uses the entropy weight method and gray comprehensive evaluation method to build the financial risk evaluation system and evaluation model of small and medium-sized real estate projects.Subsequently,through the introduction of five small and medium-sized real estate project cases A,B,C,D and E,their respective characteristics and common characteristics are found and summarized into five different types of small and medium-sized real estate projects.And then,the financial data of five small and medium-sized real estate projects are substituted into the entropy weight gray comprehensive evaluation model,and the financial risk correlation degree of each project is obtained,And from four angles of financing risk,investment risk,operation risk and income distribution risk,the financial risks of each project are evaluated.It is found that small and medium-sized real estate projects have large and small financial risks,especially the difference of financial indicators of operation risk is the largest.Finally,the paper puts forward corresponding financial risk response strategies for the common risk points and their respective risk points of five different types of small and medium-sized real estate projects,so as to provide theoretical guidance for preventing and coping with financial risks of small and medium-sized real estate projects in China.