Research On Credit Risk Management Of Bright Dairy Co.,Ltd

With the deeply economy development, the credit risk management plays an increasing important role in the enterprise. This in turn affects the cash flow and liquidity and increases the running cost of the enterprise. Credit risk management has thus become a critical issue.This thesis is based on the case study on a listed company, Bright Dairy. Focusing on the management organization, credit management process and achievement appraisal, analyzed the causation of credit risk faced by Bright Dairy. Applying the AMEC Credit Control Theory, based on the Z-factor as part of the credit assessment, designed the general credit management system, includes specific credit management department, credit assessment, credit management work flow and risk alert accordingly, it also includes the studies on the strengthening of the enterprise's attitude towards credit risks and the culture of the sales force. This thesis also analyzed the key points of credit risk management implementation to ensure Bright dairy a successful implementation. This analysis aims to achieve increased sales and market share despite better credit control and monitoring of credit risks. It also intends to improve cash flows and liquidity in order to be more accountable to the shareholders.The recommendations are made after taking into consideration the current financial status of the enterprise and strive to achieve stable growth in the face of stiff competition.