Reinforcing Credit Risk Management of Enterprises
Yang Wei-dong
Abstract
Yang Wei-dong
Abstract
Credit is the foundation that market economy can operate on, and it is also a prerequisite keeping the order of market economy. Since our country is at the starting stage of market economy, various kinds of credit issues take place repeatedly, and every legal system needs being perfected badly. As sell on credit becomes the main way of trade in market day by day, credit risk management of enterprises has already become a major problem. The paper analyzes and discusses the existing problems in enterprises' credit management and proposes several schemes in strengthening enterprises' credit risk management, expecting to bring some benefit to the control of credit risks of the enterprises in our country.
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Credit is the foundation that market economy can operate on, and it is also a prerequisite keeping the order of market economy. Since our country is at the starting stage of market economy, various kinds of credit issues take place repeatedly, and every legal system needs being perfected badly. As sell on credit becomes the main way of trade in market day by day, credit risk management of enterprises has already become a major problem. The paper analyzes and discusses the existing problems in enterprises' credit management and proposes several schemes in strengthening enterprises' credit risk management, expecting to bring some benefit to the control of credit risks of the enterprises in our country.
Key concepts: Business, Order (exchange), Credit enhancement, Credit risk, Credit reference, Credit crunch, Control (management), Credit history