Credit Risk Management: In Wenzhou Daito Paper Co.,LTD. Of Applied Research

Since The third quarter of2011, the monetary policy in China tightnessalternating. After government to expand the investment, SME credit difficulties, theWenzhou broke out in the first private lending crisis. Wenzhou Dadong Paper Co.,Ltd.（Hereinafter referred to as Dadong Paper）first to introduce3+1credit riskmanagement models, provides a good template for the fight against credit risk.From the microscopic point of view of business management, what is the natureof the problem of Wenzhou credit crisis? The Dadong Paper，as a typical microcosmof private enterprise，how the credit risk of the firewall can be spared, to avoid risks?Few in this article Commenting on the macro-oriented government financial policiesand capital market management， strive to Wenzhou Dadong Paper probe into theorigin of the credit problems in the enterprise business activities and to find a solutionto avoid credit risk from the perspective of modern business management, helpenterprises to establish a valid credit Firewall. These are not problems to be solved inthe financial winter, packaging enterprises in Wenzhou and healthy development ofEverlasting.China’s Ministry of Commerce of the3+1credit management based on themodel, combined with the capital investment risk theory and risk management theory,the concept of risk theory to practice activities of daily sales management, andproposed Wenzhou and their ownenterprise characteristics of customer credit riskmanagement, covering the recognition of credit risk, credit risk estimation, the fouraspects of the evaluation of credit risk and credit risk prevention.On the basis of theoretical analysis to Wenzhou Dadong Paper Co., Ltd. in theinstance of the implementation of corporate credit management, according to theprinciple of customer credit risk identification, data analysis, DSO analysis andmultivariate analysis of the theory of corporate credit ratingmodel, provide a basis forenterprise credit risk evaluation. In the specific implementation, and further buildDadong Paper with their own characteristics,3+1customer credit risk managementmodels. Changes in business philosophy, and strengthen risk awareness, standardizethe risk management process, establishment of binding mechanisms, the establishment of good corporate credit culture, rational use of legal means of effective riskprevention system, and strengthen control by accounts receivable, adjust indicators ofperformance evaluation to strengthen the investigation and monitoring of thecustomer’s credit, the implementation of effective credit management and controlstrictly evaluate the sales department, adopt a flexible and effective debt settlementmeasures to achieve the purpose of credit risk controlled and sound development ofenterprises and, ultimately, the firm’s strategic goals.In this paper, the following aspects of innovation:1、First in the identification of the enterprise customer management of credit riskin the business removed some of the traditional factors and the introduction of someWenzhou characteristics with reference to factors;2、DSO-based analytical methods and a variety of multivariate analysis methodsto build the original the Dadong Paper enterprise credit evaluation model, and laid thefoundation for credit risk estimation;3、Design3+1credit risk management models tailored for the enterprise, toDadong Paper Customer Credit Management has its own characteristics and the actualreference.Opened up a new perspective on the packaging industry, enterprise credit risk,and also widened the field of practical application of risk management; in addition toa clearer understanding of the problem should be noted in the introduction of creditrisk management system is established and dynamic control, moremainly concernedabout how the implementation process of corporate strategy implementation andimprovement of competitiveness. Both packaging enterprises in Wenzhou customerrisk management recommendations and conclusions, but also opened up new ideas ofcustomer credit risk management in other industries.In this thesis, I personally experienced by the author how to create, how toprevent and control instance, once again demonstrated the importance andeffectiveness of credit risk management for the achievement of corporate strategy.The same time, by recording this process, the other companies to learn fromexperience to avoid mistakes, Wenzhou and packaging enterprise management levelto catch up with the pace of international advanced level.