Corporate Credit Risk Management System

With the advent of the economic era of buyer, enterprise credit trades grow up to be the dominant trading pattern of the market, and the enterprise behaviors also become an important market behaviors. Credit resources are vital for enterprise existence and development. When the credit resources are unreasonably abused, the credit trades contain enormous trade risk. Recently, the research report provided by the consultant in commercial credit shows that inter-corporation credit trades apparently deteriorate and the loss from credit trades increases sharply. Such statistic data reveal the neglect of credit resource management and credit risk control has already reached a surprising degree in our enterprises. International organization and the foreign experts point out that one of the biggest problems in the micro-economy of China is the absence of credit management and risk control system. This will be the obstacle to the long-term development of China's enterprises. So, how to administer the credit resources, how to reduce the credit risks, how to construct the credit risk management system is a pressing problem faced by enterprises.Meanwhile, the development of the modern economics theory has gradually returned from the strict quantity analysis to the probe of economic behavior itself, this has improved the explanation of the theories to the economic behaviors, and has provided strong theoretical support for studying the economic behavior under the specific environment. Development in the economics theory of the information reveals that under the non- symmetrical information trade background, during the process of maximizing self-interests of the " economic people" of limited reason, the germinating of opportunism behavior is inevitable. In the enterprise credit trading process, such opportunism behavior will directly lead the credit resources outflow and the credit risk loss to the enterprises who award the credit in the trading. So, the research on the forms of non-symmetrical information and the subsequent opportunism behaviors construct the theoretical basis of this paper. After the analysis of the characteristics of the different forms of the non-symmetrical information of each trading link and the analysis of risk factors of each trading link, the controlling mechanism of reducing the non-symmetric degree in the economics theory of the information has been introduced to each link of the credit trading, so as to wholly answer the problem of how to construct and how to carry out the enterprise credit trade risk management system.The first chapter of the paper begins with the definition of credit risk, then, utilizes the basic principle of economics of information to study the origin cause of the credit risks of enterprise. Under the non- symmetrical information trade background, the information-advantageous part will utilize privately owned information to engage in opportunism behavior; on the other hand, it's difficult to make perfect contractual penalty, thus connive at the behavior of breaking one's promise, and the credit risks of enterprise come into being. Privately owned information can be classified into two kinds: concealed information and concealed behavior. The former causes the behavior of adverse selection and the later causes the behavior of moral hazard. The basic principle of economics of the information has been proved that establishing the signal conduction mechanism and the signal discrimination mechanism can reduce the behavior of adverse selection, and establishing the controlling and deterring mechanism can reduce the behavior of moral hazard. However, in view of the complexity of the management activity of credit risks, even though the first-step information gotten through the above mechanism is authentic and intact, it can't be used to make the economic decision. So, we must process and deal with the first-step information to transform them into the useful second-step information on which scientific decision are based. Two kinds of opportunism behaviors ma...