The Study Of Credit Risk Control And Management For State-owned Steel Trade Enterprises

Along with the market-oriented reform keeps carrying out and in order to obtain a larger market share in the increasingly fierce international & domestic market competition, credit sale has become a common operating mode and one of the important methods for gaining competitiveness. Though credit sale brings more and bigger business opportunities, credit problems have inevitably become a big challenge against enterprise development.Recently, the bankruptcy of steel companies caused by bad risk management occurs frequently, not only affecting the companies themselves but also threatening the operation in the steel trade industry. On the other hand, due to the cross infections of credit risk, once a large company meets credit crisis, then it will endanger the development of regional and industrial economy. The phenomenon and its spread will make enterprises to recognize the importance of credit risk management.Credit risk management is in its early stages in China and the management skills and workflow still imitates the system management of western developed countries. For enterprises always neglect that credit risk management should exist in all key nodes of the workflow, their risk management system is loose and cannot effectively give play to the functions of credit risk management. The writer is to summarize the present credit risk situation and the problems in credit risk management of state owned steel trade company through the study of the existing research framework. For the problems identified, the writer raised the credit risk optimization of Sinosteel Corporation Limited, which can control the whole range of credit risk management, including assessment before doing the business (customer credit evaluation and management), controlling the credit sales process and tracking after the traction (receivable management and credit assessment reviewing system). Meanwhile, combined with reasonably practicable incentive rules of AR collection and credit risk diversification mechanism, the credit risk management system would be improved better.