Research On Risk Management Optimization Of Overseas Accounts Receivable In Z Group's Trade Sector

Z Group is a diversified multinational group company that integrates six major business segments:international trade,domestic engineering,international engineering,urban investment,consulting services,and international labor services.In 2017,Z Group actually completed a total profit of 448 million yuan,but due to the digestion of the overseas trade receivables of the trading sector,provision for bad debts and inventory depreciation was 104 million yuan,and bad debts and bad inventory provisions for engineering sectors were 74 million yuan.The total profit of the consolidated statement has shrunk to 270 million yuan.The bad debts of the overseas receivables of the Z Group's trading sector have brought great risks to the Group's earnings,reflecting the problems in the risk management of overseas accounts receivable of the Z Group's trading sector.It is urgent to formulate an optimization plan to improve the deficiencies and protect the interests of the group.In the first chapter,the author introduces four sections,which are the research background and significance,the literature review and review,the research methods and framework,and the innovation points.Among them,domestic and international literature review involves credit risk management,internal control of accounts receivable,reasons for the formation of overseas accounts receivable risk and risk management strategies.The second chapter is related to the theory of risk management and the theory of overseas accounts receivable management.The third chapter introduces the Z Group company profile,trade sector organization structure,department staff responsibilities,export business process,and also analyzes the scale,aging and customers of the overseas trade receivables as of December31,2018,summed up some characteristics of overseas accounts receivable.Then,it introduces the process of risk management of overseas receivables in the trading sector,including business background investigation,business approval,signing of export contracts,performance of export contracts and recovery of overseas accounts receivable.Finally,the author conducted a risk assessment based on comprehensive interview records,company system and financial information.The risk levels were divided into general risks,important risks and major risks.A total of 11 major risks were identified,namely national risk,customer credit risk and supplier credit risk,contract risk,exchange rate risk,bad debt risk,prepayment risk,product quality risk,overdue risk of overseas accounts receivable,internal control risk,information system risk,human resource risk,then made a risk list.The fourth chapter points out the problems in the management of overseas accounts receivable in the trade sector,and analyzes some reasons.These problems include:(1)The exchange rate risk prevention measures are single,the time and intensity of the lock-up are difficult to grasp,and the financial quality of financial personnel is highly demanded;(2)Credit risk management is not in place,mainly reflected in foreign countries.Customer credit risk relies only on credit insurance,lack of the company's own credit rating,domestic supplier credit investigation is too simple;(3)contract risk prevention ability is weak,mainly in the contract signing process lacks legal professional participation and contract terms risk control;(4)The overdue risk of accounts is relatively high,mainly reflected in the overdue rate of monthly accounts of the benchmarking enterprises in the trading sector is around 10%?13.3%;(5)the risk prevention ability of credit insurance is not strong,and it is manifested in the salesman.For the lack of meticulous analysis of the overdue accounts of the investment insurance business,the credit insurance payment process is complicated and there are many risk points.There will be problems related to insurance coverage due to failure of insurance operations such as personnel operation errors or credit insurance;(6)The internal audit incorporates the risk prevention and control of overseas accounts receivable,which is reflected in the fact that there are too few personnel in the audit department at headquarters,and there are lack of internal audit regulations.Risk investigation and supervision of overseas accounts receivable;(7)Insufficient management of human resources,mainly in the areas of insufficient staff,high staff pressure,and lack of positions;(8)Internal control mode has defects,mainly in the group and There is a lack of operating agencies in charge of various business segments among various companies,lack of risk prevention and“firewall”between the group and branch offices,and unclear responsibilities of business departments;(9)Information systems need to be improved,mainly in the function of trade software.Simple and internal reporting systems are not perfect.In view of the results of risk assessment and the shortcomings in management,the author has developed an optimization plan optimization plan including improvement measures and safeguard measures.Improvement measures include:enriching exchange rate risk control measures,improving credit risk management,strengthening contract management,strict collection and management of overseas accounts receivable,preventing credit risk,transferring risks in other ways,and strengthening audit monitoring.In terms of credit risk management,the author has improved credit risk management from the perspective of foreign customers and domestic suppliers,including the production of overseas customer credit rating tables and domestic supplier credit verification audit reports;In contract management,the author It is recommended that the contract signing process requires legal professionals to intervene,rely on legal professionals and strict approval process and customer negotiation ability to carry out contract clause risk prevention and control,carefully select foreign payment methods and refine the deferred penalty interest operation rules;In tenns of collection and management,the author proposes to set up a collection manager and overseas accounts receivable management posts,and improve the credit collection measures.It is proposed to establish an early warning system for overseas accounts receivable and create a classification warning table to clarify the collection commissioner and the work content of the overseas accounts receivable management post,and the improvement of the export business overdue remittance form.In the follow-up management,it is also recommended to set up a risk prevention and control team and request a monthly regular meeting;In the prevention of credit risk,it is recommended to add the letter security risk commissioner keeps track of the credit insurance business and controls the risks therein;Type transfer risk,it is recommended to select accounts receivable financing;In strengthening the surveillance audit,the audit recommended that the headquarters of the Ministry of additional manpower,improve internal audit procedures,the use walkthroughs overseas accounts receivable on a regular basis to conduct a special audit.The safeguard measures include:(1)Strengthening the construction of human resources,including improving the human resources management system,formulating recruitment plans,increasing manpower,and implementing the financial manager appointment system;(2)Improving the internal management and control model,including switching to the business department system and promoting the trade sector.The company changed its subsidiary,set up a follow-up department,added credit management posts,collection commissioners and overseas accounts receivable management posts and established quality inspection centers;(3)Strengthened information construction,in cluding improving trade software and adding document management modules.And the risk warning module and the improvement of the internal reporting system,and the addition of the audit module in the contract management system.The author hopes to optimize the program to reduce the overdue rate of accounts to 5%,enhance the risk prevention and control ability of the overseas trade receivables of the trading sector and enhance the optimization effect of the group's management a nd control.The conclusions include research conclusions,shortcomings and prospects.The conclusion of the study is to evaluate the current situation of risk management of overseas accounts receivable of Z Group's trading sector and summarize the optimization plan.Insufficient refers to the fact that the article is not optimized for some problems due to space limitations and lack of information,or the optimization is not enough.The outlook mainly expounds some of the author's prospects for Z Group's overseas accounts receivable information management.The author hopes that this article can provide reference and reference for the domestic foreign trade enterprises and the diversified multinational enterprises'overseas accounts receivable risk management.