Narrow China's Corporate Credit Risk Of Micro-management Path

In the age of economic globalization, Chinese enterprises are facing greatchallenges from the transformation of economic systems and ever intensifyingcompetition from foreign companies. Corporate credit deficiency has become a seriousproblem, giving rise to narrow credit risks which erode profitability and curb steady andhealthy growth of those enterprises. Whether an enterprise can effectively monitor,reduce and even eliminate the negative impact of narrow credit risks has become animportant yardstick to measure its ability to enhance core competency. Therefore, howto find an effective way to control and fix narrow credit risks during the economictransformation remains a significant question yet to be answered.In this thesis, we have thoroughly studied the relations between credit deficiencyand narrow credit risks, analyzed two solutions widely discussed in the academic world,and discussed in detail the microcosmic governance of corporate credit risks. It isconcluded in this thesis that, compared with mandates from government policies, themicrocosmic governance is not only the best complement to prevent credit risks atpresent, but also a fundamental, China specific rule to solve the problem for Chineseenterprises in the long run.In addition, using enterprises as the objects of microcosmic study, we havesystematically analyzed the policy making, structure and process of governing narrowcredit risks, and proposed an overall governance model integrated with the CRM systemwhich emphasizes internal management and external prevention.Through our proposal, we anticipate to contribute to the search of best solutions forgoverning corporate narrow credit risks.