The Research On Risk Management For International Settlement Of VIC Company

Since Open and Reform policy, Chinese economy is facing a continuous high-speed growth of more than 30 years. In 2013, China surpassed America, becoming the No.1 trading country in the world. But in recent years, because the global economy is continuously depressed and the competition in the international market becomes more and more severe, the surviving environment of Chinese export companies is deteriorating. Many export companies failed to retrieve payment duly, even went bankruptcy afterwards, which makes many export companies realize the importance of the prevention of the risks in international settlement. Therefore, export companies should learn more theories and knowledges to seriously analyze all risks in their own international settlement process, and finally find effective methods to prevent all these risks.This article consists of 4 chapters. The first one is introduction, introducing the background and signification of this article, as well as the domestic and abroad study situation. The second chapter introduces the current situation of VIC company's business, and the management situation on their international settlement, as well as states all kinds of risks the company is facing in international settlement process. Chapter three analyzes, in details, all the internal and external reasons causing the risks of VIC company's international settlement. Based on Chapter three, Chapter four, according to VIC company's specific situation, offers several effective proposals and methods to prevent and avoid all these risks. Firstly strengthen the inside risk awareness and inside risk management. Secondly, find out different risk-preventing methods for different international settlement methods. Lastly, strengthen management on exchange rates, incoterms, portfolio of international settlement methods, as well as apply Sinosure's export credit and other methods to effectively prevent VIC company's risks in international settlement, and ensure a long-lasting and healthy development.