Study On Evaluation And Control Of Financial Risks Of HC Real Estate Group

Under the dual role of the rapid economic development and the rapid deepening of the urbanization process in china,real estate enterprises have ushered in new development opportunities.After more than a decade of rapid development,real estate enterprises have played an irreplaceable role in promoting the economic development of China.With the continuous changes in the macro environment and the successive introduction of national macro-control policies for real estate enterprises,it has become increasingly difficult for them to survive.In this complex environment many enterprises have simple financing channels,narrow business scope,low brand effect and low market share.They have a higher probability of financial risk and have a low risk tolerance.Once the financial risk occurs,it may bring huge losses,or even to direct bankruptcy.Therefore,it is indispensable to study the financial risks that exist in real estate companies and to evaluate,prevent and control them.This paper takes HC Real Estate Group,a real estate enterprise in Anhui Province,as the research object.It firstly composes the theories related to financial risk in real estate industry and the current status of researches about financial risks,so as to provide theoretical support for the subsequent research.Next,it introduces the basic corporate situation and financial status of HC Real Estate Group,analyzes the current situation of financial risk evaluation and control of HC Real Estate Group,with analyzing the causes of riskfrom internal and external factors,and identifies the financial risks of the enterprise.Then 20 financial indicators were selected from six aspects of the enterprise:debt service,profitability,operation,development and,cash flow and financial risk controlto construct a financial risk evaluation index system.At the same time it determines the index weights with analytic hierarchy process,and establish an evaluation model with the fuzzy comprehensive evaluation method,to evaluate the financial risk of the enterprise.Finally,in order to help enterprises effectively control financial risks,based on the results of the previous financial risk evaluation and combined with the reality of HC Real Estate Group,the paper proposes the financial,mainly involving various aspects such as widening financing channels,strengthening inventory management,exploring innovative business and enhancing risk prevention awareness.