What risks should Sino-foreign joint ventures pay attention to in engineering construction?

Financial management is an important part of enterprise management, which permeates all fields and links of enterprises and is directly related to the survival and development of enterprises. With the advent of the era of knowledge economy, the traditional financial management model can no longer meet the requirements of economic development, and the reform and innovation of financial management is imperative. Its management concept and operation mode must be synchronized with the needs of enterprise development in the era of knowledge economy, thus serving to improve the economic benefits of enterprises. Therefore, this requires the CFO of an enterprise to adopt the optimal financial policy through reasonable financial management, fully consider the time value of money and the relationship between risk and reward, and realize the maximization of enterprise value on the basis of ensuring the long-term stable development of the enterprise. Trap 1: Confusion between finance and accounting Although most enterprises have established modern enterprise systems, accountants of some state-owned enterprises and even some listed companies still confuse finance and accounting. They think that the accounting department is just a simple accounting center, providing financial information, and its attitude towards financial management and accounting is ambiguous and confusing. At present, the academic circles have different views on the relationship between financial management and accounting. There are three main viewpoints, namely, the view of big accounting, the view of big finance and the view of juxtaposition of finance and accounting. The similarity of the three viewpoints is that they all admit that financial management and accounting are not the same thing. As to whether the two are related or juxtaposed, different people have different opinions. The author believes that finance includes accounting, which is not a separate economic category and has no separate management object. Accounting is the basis and component of financial management. First of all, the direct goal of accounting is to provide true, reliable and complete accounting information for enterprise financial management, and its contribution to enterprise management goals can only be realized through financial management, and their goals are both consistent and inclusive; Secondly, financial information is not equal to accounting information. Processing accounting information, supplemented by financial indicators and text descriptions, forming financial information. Accounting information is an important part of financial information; Third, financial management includes cost management, fund-raising management, investment management, working capital management and enterprise surplus distribution management. The recording, accounting and summary of these contents depend on accounting. Therefore, in content, financial management includes accounting work, which is the information support subsystem of financial management system. Therefore, financial management includes accounting, which is the basic work of financial management. Confusing financial management and accounting in organization and operation is not conducive to improving enterprise management, improving enterprise management level, and is not conducive to long-term operation and sustainable development of enterprises. Trap 2: Profit first From the perspective of financial management textbooks, this is not a question of whether one can choose, but a historical development process. Fundamentally speaking, the goal of socialist enterprises is to create more wealth through the production and operation activities of enterprises and meet the needs of all people's material and cultural life to the greatest extent. However, due to the different stages and levels of productivity development, there are different forms of expression while embodying the above-mentioned fundamental goals, that is, we have experienced four processes: maximizing total output value, maximizing profits, maximizing shareholder wealth and maximizing enterprise value. Nowadays, private enterprises, foreign-funded enterprises and Sino-foreign joint ventures all understand profits as corporate wealth, and position the financial management goal of enterprises as maximizing corporate value, not maximizing corporate profits, thinking that the more profits, the more corporate wealth will increase. It is understandable to think about it carefully. However, there are also such misconceptions in large and medium-sized state-owned enterprises and listed companies. For example, some enterprise managers follow the trend and chase hot spots, and make wrong decisions to maximize the long-term profits of enterprises, thus ignoring the interests of enterprises' society, employees, creditors, debtors, consumers and investors, and deviating from the overall goal requirements of enterprises. The goal of enterprise financial management is the goal of enterprise financial management activities, the premise of a benign cycle of enterprise system and the standard for evaluating the rationality of enterprise financial activities. Maximizing enterprise value must be our unswerving pursuit and goal. Trap 3: Financial and corporate strategy are out of touch. In the process of deepening economic system reform, the original large and medium-sized state-owned enterprises have now become group companies, and their financial relations are also varied. There are independent legal persons, unified accounting and contract system. Between the head office and the branch office, it is very easy to produce the inconsistency between the corporate financial strategic objectives and the corporate strategic objectives. As a result, the relevant departments in the enterprise are at a loss, unable to coordinate various financial relations, unable to let people know whether they have achieved financial goals, unable to motivate and restrain employees, and unable to conduct effective performance evaluation; It is easy to make mistakes in investment decisions, and it is difficult to prevent financial risks such as income and expenditure, cash flow and financing, and to maximize the return on investment and asset utilization; It will make all departments of the enterprise start from their own units and ignore the overall strategy of the enterprise, which will lead to the decentralization of enterprise power and reduce the efficiency of enterprise resource utilization and the overall ability to resist risks. Therefore, in enterprise management, the choice and implementation of strategy is the fundamental interests of enterprises, and the need for strategy is above all else. Enterprise financial management must put forward feasible enterprise financial strategic objectives according to the requirements of enterprise overall objectives and the implementation of enterprise strategy, so that enterprise financial management will not make wrong financial decisions and financial plans when the external legal environment and economic environment change, and try to avoid the waste of resources and the decline of economic benefits caused by the inconsistency between enterprise financial strategic objectives and enterprise strategic objectives. Trap 4: financing chaos capital structure refers to the proportional relationship between stocks (common stock and preferred stock), bonds, bank loans and retained earnings of enterprises. Because it will directly affect the owner's rights and interests of enterprises, enterprises of different natures will adopt different attitudes. For example, some listed companies now prefer equity financing, and there is pressure to repay the principal and interest by issuing bonds and bank loans, but it doesn't matter if they issue stocks, even if they lose a lot. The general mentality of such enterprises is: anyway, you are a minority shareholder, what can you do? On the contrary, some SMEs like debt financing. Without the ability to pay debts, they adopted a high-risk debt management strategy in an attempt to promote the development and scale expansion of enterprises, thus turning a profitable enterprise into a loss-making enterprise, and the profits were filled with debt service. Theoretically, enterprises can use debt to operate in debt, which can reduce the comprehensive cost of enterprises, obtain financial leverage income and reduce financial risks. However, if we don't grasp the scale, interest rate and maturity of debt, we will estimate the profitability of investment projects according to personal preferences. For this kind of investment, we seldom consider the difficulty and risk of the investment project, whether the rate of return of all funds is higher than the loan interest rate, and we are not good at paying attention to the reasonable combination, the ratio of income to cost, the formation of reasonable capital structure and the decision of debt time structure, which often brings great risks to enterprises. Generally speaking, the prerequisite of debt management is that the products of enterprises are well sold and the products are in short supply, so it is possible to obtain financial leverage benefits. In short, during the transition period of China's economic system, that is, at present, the financing problem cannot be mechanically copied according to the western financial management theory. At present, ordinary non-listed companies are not allowed to issue stocks and bonds, and there are still many obstacles for ordinary small and medium-sized enterprises and private enterprises to borrow money from banks. Listed companies really need further regulation. Trap 5: Lack of budget management function From the perspective of financial budget management, financial budget management methods involving various economic phenomena inside and outside the enterprise have not been actually applied in many enterprises, and there is a general lack of understanding of budget management, or financial budget management is a mere formality, or only attaches importance to the planning, coordination and control functions of the budget itself, and ignores the role of budget management in other aspects, resulting in financial budget management failure. Correctly handle the relationship with enterprise strategic management, enterprise performance evaluation, enterprise resource allocation, enterprise risk control and improving enterprise economic efficiency, and grasp the correct goal and direction of financial management. From the aspect of financial cost management, many enterprises can't focus on activities rather than products, so the perspective of financial cost control has not shifted from the traditional primary form of cost reduction to cost planning, cost budgeting, optimal allocation of resources, reasonable cost, prevention in advance is more important than adjustment afterwards, and production process reorganization. From the aspect of enterprise performance evaluation, we still use the profit-based performance evaluation method, and still use indicators that can't reflect the cost or capital expenses, and can't reflect the final profit or value of enterprise production and operation, such as return on net assets, return on total assets, earnings per share, etc. The existing financial evaluation index system lacks the evaluation index of technological innovation ability, especially the added economic value that has been used by world-class companies for performance evaluation and assessment, and it is rarely studied in depth, which restricts its development. Trap 6: Diversified financial management trap Many enterprises are keen on diversified financial management after their financial strength and scale have expanded, forgetting the huge risks involved. In their crazy minds, they only remember "you can't put eggs in one basket", but what is the other basket like? Are you familiar with it? Can you put it in? What happens if you put it in? They often blindly carry out diversified expansion without mastering the relevant basic knowledge, basic experience and basic skills in the new expansion field, not handling the newly established relationship, not having the financial management backbone to enter the new field, and not having enough funds, time and human resources. This kind of blind expansion behavior, which does not keep the enterprise base well according to the characteristics of enterprise and social development, often falls into the trap of diversified expansion. After the expansion of the enterprise, due to the change and expansion of the organizational structure, the increase and complexity of functional departments, it has suffered from the "big enterprise disease", which has led to a corresponding increase in factors such as wrangling, crowding out and internal friction, as well as the phenomenon that various departments compete for budget indicators, investment and fragmentation, which often leads to the waste of enterprise resources and the decline of economic benefits. Trap 7: Internal auditors are superficial. At present, quite a few small enterprises have not established internal audit institutions. Enterprises that have established internal audit institutions (including some listed companies) are only responsible to the factory director and manager, that is, according to the authorization of the factory director or manager, they audit problematic or untrustworthy subordinates, which obviously has no effect and significance for the supervision at the same level and at the next higher level. The status of audit can not be detached and independent, and it is difficult to give full play to its due role. Due to the absence of the owner of the state-owned enterprise, and at the same time, the internal audit supervises its subordinates on behalf of the senior managers of the enterprise, thus forming a dual identity (that is, the internal audit not only supervises the enterprise on behalf of the state, but also supervises its subordinates on behalf of the senior managers of the enterprise). This overlapping and deviation in positioning will inevitably lead to the weakening of the independence of internal audit, that is, this internal audit organization system often restricts its authority because of the existence of interest relations. However, the independence of internal audit institutions and their personnel is weak, and they cannot carry out their work objectively, truly, fairly and deeply. Even if they make an audit decision, it will not be effectively implemented due to the constraints of the management system. The operation of enterprise internal audit institutions in western countries is that the audit committee is a branch of the board of directors and a specialized agency independent of enterprise operators. Its important function is to hire external auditors to audit the financial statements of enterprises, supervise the internal audit, and review the organization, articles of association, budget, personnel, work plan and audit results of internal audit, so as to improve the independence of internal audit departments and improve the efficiency of internal audit. At present, there is no unified internal audit execution standard in China, and internal auditors can only analyze and judge according to their own experience and knowledge level, which leads to a certain arbitrariness of audit conclusions and increases audit risks. Therefore, it is necessary to formulate internal auditing standards to reduce the arbitrariness of enterprise internal auditing. The head of the internal audit department must be able to establish a direct information exchange mechanism with the board of directors and SASAAC, and directly submit a written work report to the board of directors and SAAC to form a check and balance mechanism for enterprise managers. The appointment and removal of the head of internal audit belongs to the board of directors or SASAC. Internal auditors shall not undertake business responsibilities and participate in the design, installation and implementation of the internal control system. Trap 8: Lagging management methods In the current increasingly fierce market competition, enterprise financial managers must lose no time to change the working methods of financial management, so that financial management can change from manual mode under the planned economy system to modern and information mode under the market economy system; The financial organization of enterprises should also be adjusted appropriately. By revising various financial management systems, clarifying the relationship between power and responsibility, changing the traditional organizational setting of accounting, properly strengthening organizational communication and cooperation, and building a financial and management information platform, financial management can actively support the reproduction process of enterprises and run through the whole process of production and operation of enterprises, so as to make correct decisions for enterprises and prevent risk control.