H Group Company’s Financial Risk Management Research

The financial crisis is the inevitable result of the competition between modern enterprises and markets,especially when the current market economy conditions are not yet improved.Real estate companies are a high-risk,high-investment,high-return company,and in the risks that all real estate companies may face,financial risk management accounts for particularly important parts.Normal operation and development can cause the company to face the crisis of bankruptcy and liquidation.Therefore,the analysis and prevention of real estate companies do well in terms of management and prevention of financial risks,which helps companies to discover and reduce financial risks.This paper takes the H Group company as an example,based on the related concepts and basic theories,the actual situation of the H Group company and the characteristics of the industry are analyzed.Through selecting relevant indexes of listed companies in the same industry to conduct horizontal comparison,and at the same time identify financial risk factors,in view of four kinds of risks in the field of financial risk,such as investment risk,financing risk,working capital risk and income distribution,analysis can be concluded that the H group has risks in fundraising,investment,operation funds and income distribution.Based on the relevant financial data of H Group Company in the five years of 20172021,the author used the Z-score model analysis method to calculate the Z value of the H Group company and found that the overall financial risk of the H group company was large;Key financial indicators,comprehensively evaluate the operating capacity,debt repayment capacity,cash acquisition capacity,profitability and development capabilities of the H group company.The results show that the company has poor short-term liquidity,poor asset monetization capacity,poor cash acquisition capacity,etc.The problem,and match the four major financial risks identified,and then propose corresponding risk management countermeasures.It is hoped that through these management countermeasures,the company’s financial risks can be effectively managed,thereby avoiding the company’s interest loss and promoting the company’s long-term and healthy development.It is also hoped that this article can provide a reference for the sustainable development of other real estate companies by solving the financial risk problem of the H group company.