Improving the Management System of the Enterprise : Financial Risks and Preventive Measures of a Real Estate Company

Abstract

The qualification work presents methodological and practical recommendations for improving the enterprise management system, conducts a theoretical and methodical investigation of the enterprise management system, analyzes the existing management system, and identifies and substantiates ways to enhance the management system of the enterprise. Managing an enterprise system is a complex process that requires meticulous planning, execution, and maintenance to effectively align with the strategic goals of the enterprise. From collecting detailed requirements to developing adaptive system architecture, each phase builds on the previous one, creating a robust structure that supports all aspects of enterprise management. This comprehensive approach not only optimizes operational processes but also improves decision-making capabilities, increases efficiency, and facilitates organizational growth. The research highlights the enterprise's strengths, such as brand reputation, precise market positioning, and strong financial capabilities, and points out weaknesses, including a high level of corporate debt and financial strain in cash flows. The application of comprehensive analysis, including SWOT and PEST methodologies, provides a detailed assessment of the internal and external environments of the enterprise. The study also utilizes the Analytical Hierarchy Process (AHP) to assess the weight of various financial risk indicators, establishing a solid foundation for analyzing the financial health of the enterprise based on financial risk assessment and the use of preventive measures. Additionally, this rigorous analytical approach facilitates the development of targeted strategies that proactively address identified risks, enhancing the resilience and adaptability of the enterprise. By integrating these methodologies, the research not only pinpoints critical areas for improvement but also maps out strategic directions that can lead to enhanced operational efficiency and financial stability. The results reveal significant fluctuations in net cash flows, investment activity, and solvency indicators, indicating the need for improvements in cash flow management and investment planning. The research proposes several risk-reduction strategies for Nanning Red Sun Real Estate Company, including enhancing project planning, improving cash flow management, diversifying investment portfolios, and implementing technological innovations. These measures aim to strengthen the company's financial foundation, ensure its sustainable development, and increase its competitiveness in the real estate market. Quantitatively measured improvements in key performance indicators underscore the effectiveness of these strategies, demonstrating the enterprise's ability to adapt and thrive in a dynamic economic environment.