Research On Financial Risk Management Of JY Real Estate Company

The characteristics of the real estate industry,such as large financing scale,long investment cycle,long payback period and slow capital turnover,lead to significant financial risks.In recent years,due to the impact of macro environment and fierce competition in the market,the sales volume of commercial housing has declined significantly,and the number of rotten housing has gradually increased.The real estate industry has faced unprecedented challenges.Many companies are facing survival pressure and even some companies have gone bankrupt due to the lack or improper financial risk management.Compared with the financial risks of small and medium-sized real estate,there are insufficient management ability,poor risk resistance ability,little risk control,so the development of small and medium-sized real estate enterprises there is a great survival pressure.In this regard,not only to strengthen the enterprise’s understanding of financial risk,but also to establish a suitable for their own financial risk management system,continuous self-improvement,may face financial risk,still can continue to survive in this piece of Red Sea.JY Real estate company as a member of small and medium-sized real estate enterprises,over the years often take the high leverage fast sales model,but in the national policy control and industry competition intensified under the situation,their own financial risk pressure increased,the company’s financial risk need to strengthen research,check and fill in the gaps,so as to prepare for a rainy day.With the case of JY Real Estate Company,this paper studies the financial risk by literature review and questionnaire.Firstly,this paper reviews the current situation of domestic and foreign risk research,and summarizes the concept of financial risk and related theories.Secondly,it introduces the basic situation of JY Real Estate Company,summarizes the problems existing in the financial risk of JY Real Estate company combined with the questionnaire,and analyzes the internal and external reasons.Through financing,investment and other five aspects to identify the financial risk of the case company,the risk of the case company is analyzed.Then this paper uses the factor analysis method to select 96 A-share listed real estate companies as samples to evaluate the financial risks of the case companies.Finally,according to the results of the identification and evaluation of the financial risk of JY Real estate company,the corresponding risk control measures are proposed for JY real Estate company,and the final realization of the study of financial risk management.