| In the modern market-oriented economy, the commerce credit issues are widely considered. The development of the credit relationship among different businesses largely promotes the time and space zones of commerce transactions, meanwhile, it increases the uncertainty and risks for both sides of a transaction, that is the core issue will be discussed in this paper: the credit risk. The credit risk is one of the biggest risks a business enterprise has to face during its daily operation. Especially in the past 30 years, with the frequent changes and further evolution of the financial environment, the credit risk born by an enterprise has been largely increased. When an enterprise is trying to increase its turnover and market shares by providing its customers with short-term credit lines, it has to bear the high capital opportunity cost caused by the huge amount of receivables, as well as the risk of not being able to withdraw the receivables within the credit term because of customers' renege. The credit risk management has become the "bottle lace" problem which affects the further development even the survival capability of an enterprise. Therefore, how to strengthen credit risk management, how to reduce the credit risks have been a crucial problem many enterprises have to face and deal with. In this essay, the author mainly concentrates on the current status of the enterprises' credit risks, and further analyzes their common causes as well as Chinese enterprises' special causes, finally discusses on the pre, in process, and post credit risk control and management. During the writing of this paper, the author also introduces the practical cases of some multi-national enterprises' credit risk management in order to analyze the above issues in practice, this undoubtedly provides beneficial lessons and experiences for Chinese enterprises' credit risk management. |
