Research On Financial Risk Management Of Construction Enterprises

With the rapid development of China’s national economy,the scale of investment in China’s construction industry is also expanding.However,with the tightening of social financing,competition and integration in the industry,as well as the particularity of the industry in which the construction enterprises are located,the funds involved are large,the payment cycle is long,and the construction party only attaches importance to the progress and quality of construction.The construction enterprises neglect the management and control of financial risks,resulting in significant financial risks faced by the construction industry,which in turn directly affect the financial situation and operating results of the enterprise,Therefore,it is extremely urgent to improve the financial risk of construction enterprises and establish a sound financial risk management system.Therefore,this article attempts to take N construction enterprise as an empirical case study object,systematically identify and evaluate its financial risk points,optimize its financial risk control system,and provide financial management approaches for other similar construction enterprises.This article first summarizes the current research situation at home and abroad and combs the concept and theoretical basis of financial risk.Secondly,it introduces the general situation and financial status of N construction enterprise,and combines its characteristics as a construction enterprise to divide its financial risks into four stages: bidding,construction,completion settlement,and tax related management.It identifies its financial risks in turn,and uses the Z score model and the F score model to calculate its financial risks.Identify the existence of blind bidding risks and contract risks in the bidding stage;During the construction stage,there are risks such as excessive "two funds" and cost losses;At the completion settlement stage,there are issues such as unclear settlement of project quantities and difficulty in recovering funds;During the tax related management stage,there are risks such as unqualified invoices and false invoices.Subsequently,this article analyzes its causes from various stages and internal and external factors.Finally,in response to these issues,corresponding countermeasures and suggestions for financial risk control are proposed.In the bidding stage,it is necessary to improve the bidding decision-making mechanism and establish the enterprise contract management system;Control inventory scale and strengthen project cost control management during the construction phase;Improve the final settlement mechanism and strengthen the collection of project funds during the completion settlement stage;In the stage of tax related management,it is necessary to improve the reimbursement system and establish a tax ledger system.In addition to specific financial risk control measures for each stage of the project,this article also proposes corresponding countermeasures and suggestions for a sound and complete financial risk management and control system.Through the research on the identification and control of financial risks of Enterprise N in this article,it is hoped that it can help the company effectively control financial risks,avoid or reduce the occurrence of financial risks,and provide certain reference value for similar construction enterprises to prevent financial risks and optimize financial risk control systems,thereby promoting the healthy and stable development of construction enterprises.