Study On Accounts Receivable Risk Management Of S

After 2018,the downward pressure on the global economy is greater.The global political and economic environment are increasingly complex,and the business challenges that the companies are faced to are increasing.Accounts receivable management is a very important part of corporate financial management.How to revitalize accounts receivable and how to improve the capital turnover efficiency have become an important aspect to prevent business risks.As the foundation of Chinese manufacturing ingenuity,the power industry is a pillar industry that is related to the lifeline of the national economy.The power equipment manufacturing industry selected in this paper is faced with the problems of long receivables and large amounts of accounts receivable.The management and risk control of accounts receivable are related to the survival of enterprises.This paper selects the S company in the power equipment manufacturing industry as a research case,and analyzes the quality of its receivables in terms of scale,flow speed,aging structure and concentration.And its management status is described from the credit sales process,collection policy,credit policy and bad debt policy.It is found that S Company has large amounts of accounts receivable,slow flow,high customer concentration and lax management of accounts receivable.There are certain risks.According to the three steps of risk management,this article adopts the literature method and flow chart method to collect information on the risk factors of accounts receivable of S Company.And according to the sources of the risks of accounts receivable,its risks are dentified and analyzed from the external environment,customers and its internal control three levels.Based on the risk evaluation index system of S company's account receivable which makes external environmental risk,customer risk,internal control environmental risk,risk evaluation risk,control activity risk and internal supervision risk as sub-criteria layers,the analytic hierarchy process and entropy weight method are combined to evaluation the risks.And the result shows that the company S account receivables are at a medium risk level,it means some indicators are abnormal,and the internal supervision risk is higher.Finally,this article puts forward practical risk prevention and control suggestions for the five aspects of the external environment,internal control environment,risk assessment,control activities and internal supervision based on the actual situation of S Company.Based on the theories and methods learned,this paper conducts research on S company.And I hope that the suggestions will help to improve the ability to resistaccounts receivable of S company and promote the high-quality development of S.