Analysis and research on the Financial Management Risk of Construction Enterprises based on ISM-MICMAC

Abstract

In recent years, the competition in China's construction market has become more intense. Due to the special nature of the construction business, the financial risks of construction enterprises are constantly highlighted, and it is essential to control the financial management risks in the construction industry. This paper has innovatively adopted ISM-MICMAC to connect the risk factors from three levels of management, external interaction, and specific construction, and finally constructed a five-level financial management risk index system for the construction industry. The research results show that management risks of construction enterprises need to be controlled as a priority, external interaction risks play a taking over role in the risk system, and construction risks depend on other levels of risks. The findings of this paper will provide a sufficient theoretical basis for the prevention of financial management risks in construction enterprises.