Research On The Credit Risk Manangement Of Pharmaceutical Circulation Companies

For pharmaceutical distribution companies, hospitals and pharmaceutical companies are the largest source of profit, and also the largest source of risk. Therefore, the credit transaction has become a double-edged sword. Now more and more Chinese pharmaceutical distribution companies in the fast development caused a vicious cycle of more selling, more account receivable, more capital pressure due to the lack of comprehensive credit risk management. Customer credit risk management has become the core of the pharmaceutical distribution business management and become one of the key factors in the modern enterprises competitiveness.With years of personal experience in credit risk and receivables management and combined with international and domestic advanced risk management ideas, the author takes the credit risk management of China Resources Shandong Pharmaceutical Co., Ltd. as an example to illustrate the domestic and overseas research and application of credit risk management. By the analysis of China’s pharmaceutical distribution companies’credit risk conditions, the author puts forwards the necessity of the credit risk management implementation for pharmaceutical distribution companies and designs the risk management model. According to the specific application of comprehensive credit risk management system for China Resources Shandong Pharmaceutical Co., Ltd., the author carries on detailed analysis and explanation of the establishment of the credit management department, customer profiles building, the formulation and double control of credit period and credit limits, three-level cost accounting, etc. Examining the results of the credit risk control through three-level cost accounting is the special innovation of this paper. The application of whole process credit risk management plays an important role in risk control and improvement of running capital efficiency for pharmaceutical distributional companies.