Optimisation Of Accounts Receivable Risk Management At AOTO Under The Financial Risk Framework

With the promotion of technology and intelligence,the demand for distance learning and teleconferencing continues to grow,and the demand for intelligent upgrades in university classrooms and government and enterprise meeting rooms maintains rapid growth,which has led to an expansion in demand for optical communications,optical displays and other applications,resulting in a breakthrough in the production of optoelectronic devices in the industry,especially LED display products.274.4 billion optoelectronic devices were produced in China from January to October 2021,up 29.7% from 29.7% increase over the same period in 2020.In addition,with the continuous maturity of Mini/Micro LED display technology,displays with high-definition picture quality,high endurance,wide colour gamut range,fixed-point drive,ultra-high response speed,excellent stability and other characteristics will be applied in various industries.In the face of the broad prospects of the LED display field,many cross-border manufacturers continue to pour in,in order to obtain a higher market share and reduce product inventory,most companies in the LED display field use relaxed credit sales to expand their sales network,credit sales business,although increasing the sales revenue of enterprises,but to provide customers with too lenient credit policy will increase the risk of bad debts of enterprise accounts receivable and enterprise Accounts receivable management costs,or even affect the efficiency of the enterprise’s capital turnover,aggravate the enterprise’s capital burden,laying a great risk hidden danger to the enterprise operation.AOTO,as a central force in the industry,has the hope to enter the industry leader.However,the current quality of its accounts receivable and risk management status is worrying.Based on the financial risk framework,this paper understands the current status of AOTO’s operations and analyses the quality of accounts receivable using quantitative analysis and comparative analysis,and concludes that accounts receivable are large,slow-moving,aging and have a high bad debt rate;and elaborates on the current status of accounts receivable risk management from four aspects: accounts receivable agency setup,credit policy,collection policy and bad debt accrual;then follows by The sources affecting AOTO’s accounts receivable risk,the risk identification from external and internal factors,the use of entropy weight TOPSIS method to establish a risk evaluation system with policy change risk,customer credit risk,daily management risk and operating cash security risk as sub-criteria,and objective risk evaluation.According to the evaluation results,the deficiencies of AOTO’s accounts receivable risk management are mainly focused on the company has not yet formed a good risk management culture,lack of professional risk management personnel,irregular contract management,inadequate customer credit file,loose collection policy,lax supervision of overdue accounts and other problems and analysis of their causes.Finally,in the light of the actual situation of AOTO,we propose control strategies for the risk of AOTO’s accounts receivable in three aspects: improving risk management infrastructure,establishing financial risk early warning mechanism,and strengthening risk management of accounts receivable.It is hoped that this will help improve AOTO’s ability to resist the risk of accounts receivable and promote the highquality and sound development of the enterprise.