Research On Problems And Countermeasures In Risk Management Of TD Company

Since the reform and opening-up, conforming to the trend of economic globalization, our country has been widening opening to the outside continually, developing economic and trade cooperation with the countries all over the world on the basis of equality and mutual benefit. Foreign trade of our country has made historic development, foreign trade value raised to＄2.85trillion in2010from＄20.6billion in1978, our country has leapt to the world’s second largest trading nation from trade small country ranked32nd in the world. Foreign trade contributes great to the national economy and social development, improves international influence and status of our country significantly. With the gradual growth of foreign trade value, the risks of foreign trade enterprises in our country has been increasing, especially after the international financial crisis in2008, international market has become more competitive, global trade protectionism momentum has enhanced, the area, range and object of trade friction have been wider, RMB appreciation pressure has increased, the price of production elements such as domestic capital and labor etc has raised, uncertainties in export trade of our enterprises has been more. Faced with the severe situation, strengthening research on risk prevention, improving ability and skill in risk prevention are very important and urgent for our foreign trade enterprises, these are directly related to the survival of enterprises.Through research on TD Company, on the basis of sorting and analyzing operation and management status of TD Company from2008to2010, this article firstly identifies the cash flow risk, exchange rate risk, credit risk, green trade barrier risk and anti-dumping risk of the company, then analyzes the risk management status and problems in risk management of the company, namely the problems of unreasonable cash flow management target, too simple management process and methods, lacking of cash flow management talents, lacking of cash flow analysis of investment decision etc in cash flow risk management; the problems of weak awareness of exchange rate risk, incapability of preventing exchange rate risk by using financial derivatives, lack of exchange rate risk comprehensive management system etc in exchange rate risk management; the problems of pursuing performance growth and ignoring credit risk, weak independence and vague key point of credit management department, backward credit management methods and measures, not comprehensive customer information, ignoring export credit insurance etc in credit risk management; the problems of no information collecting and early warning mechanism of green trade barriers, weak inspection and quarantine facility equipments of material apple, not active product quality and raw materials base authentication etc in green trade barrier risk management; the problems of weak fundamental accounting work dealing with anti-dumping investigation, insufficient attention on anti-dumping risk, no anti-dumping early warning mechanism, existing differences between company product cost accounting and international cost accounting etc in anti-dumping risk management. Finally, this article puts forward countermeasures to prevent risks,.Aiming at cash flow risk, the company should raise financial personnel’s ability to manage cash flow, regulate and perfect cash flow management system, plan reasonable cash flow between financing, operation and investment as a whole. Aiming at exchange rate risk, the company should raise managing personnel’s awareness of exchange rate risk, establish exchange rate risk early warning and prevention mechanism, avoid exchange rate loss by properly using financial derivatives. Aiming at credit risk, the company should strengthen credit management awareness, establish credit management system, enhance prevention, supervision and disposing of credit risk, purchase export credit insurance. Aiming at green trade barriers risk, the company should improve material apple base establishment and product inspection and quarantine, enhance product quality authentication, set up information collecting and early warning mechanism of green trade barriers. Aiming at anti-dumping risk, the company should enhance fundamental accounting work, regulate accounting and management system, coordinate cost accounting differences with international accounting standards, set up anti-dumping accounting early warning mechanism.