Strategy and Risk Management for Centralized Funds Management at Large-Scale Construction Engineering Enterprises

As the competition in domestic and international construction markets becomes increasingly fierce, large-scale construction engineering enterprises will use technology as their support, capital as their link and depth development in the industry as their direction. Because financial management provides support for the entire construction engineering enterprise, it has a significant influence on business decisions and operations. Funds management in particular has become an especially important issue for large-scale construction engineering enterprises. Based on the unique business characteristics, management structures and products of large-scale construction engineering enterprises, this paper introduces a centralized funds management method called the main mean of funds management model and argues that centralized funds management is a necessity for construction engineering enterprises. This article also describes how to implement a centralized funds management strategy and explains the steps that must be taken at various enterprise levels during the implementation. Finally, the risks of centralized funds management are presented, and risk management measures are proposed. Centralized funds management is an important aspect of the financial management of large-scale construction engineering enterprises. The implementation of centralized funds management can improve the focus of financial management, strengthen risk management, mitigate a company’s weaknesses and disadvantages, and ensure stable and sustainable development.