Research On The Risk Control Of Securitization Of Enterprise Accounts Receivable

As the fastest developing method of financing in recent years,asset securitization plays an irreplaceable role in structed finance.Differing from other financing methods like share or bond,asset securitization relies on the predictable cash flow,issuing asset-backed securities to make things work.Meanwhile it's easier to moderate credit risks by diversification for those enterprise that have lots of receivables,when they choose asset securitization.Methods of hedge and diversification for credit risk has been a significant issue since its objective existence for the enterprise.It's possible for them to lower credit risk to a controllable level,by selling and delivering their receivables to other investors after asset securitization.The financial audit and credit risk evaluation during the asset securitization cannot make the risk eliminated but adequately disclosed,which can lead to a better risk prevention.Therefore risk countermeasure and control in the asset securitization is quite important.Analyzing various segments and points of risks and taking proper controlling methods can help make effective suggestion when using this neo-finance.This paper discuss the case of “Asset securitization of JD BaiTiao ”,begin with theory using literature analysis method to arrange knowledge about asset securitization and build up a theoretical system.Secondly,analyze the risks and relative methods of prevention the enterprise facing and taking during the receivables securitization.Also,use case analysis method to study the background and the procedure of securitization,make out identification,evaluation and control for the risks,and try to present every segment and risk point.Finally,make some summary and give suggestions.Hopefully this paper can give some help to study resemble cases.