Case Study Of Export Credit Risk Management Of H Corporation

One thing we can learn from management theories is that risks exist objectively.Risks can be kept under control through certain management systems or measures,yet they can never be eliminated.In the business world,theoretically,there are risks being created the moment the seller provides the goods before receiving full payment when business transactions are made.An excellent record of collaboration with the buyer can be useful to the seller to predict further cooperation,but there will never be guarantee of it.In China,entrepreneurs have always attached great importance to the business opportunities that credit sales can be able to bring,but they often step back because of worrying about credit risks when facing such opportunities.However,in some developed countries in Europe and America,the proportion of credit sales can be as high as 90%.From the perspective of management,the major difference of credit sales transaction between China and developed countries lies in the fact that the credit risk management system of companies in advanced countries has been relatively well-developed.A great many excellent enterprises have given more priority to credit management policy than the company’s strategy management.In this matter,Chinese companies still have a long way to go.With the guidance of credit risk management theories,taking H Corporation,a company that is specialized in the export business,as an example,through the methods of literature analysis and case study,combined with the current situation of credit management system of H Corporation,this paper focuses on the analysis of problems existing in the credit management of H Corporation.Taking the unique function of export credit insurance in building a sound credit management system for export companies into consideration,the paper rolls out the "3+1+1" credit risk management theory as solutions,which is designed to improve the mechanism of credit management of Chinese export companies and to raise their awareness of credit risks.The paper is committed to helping export companies making credit sales policies more scientifically and objectively in order to improve their international competitiveness and profits.With the help of the theory,hopefully,an increasing number of export companies would be able to accelerate their paces of “going global”.