Reasons for capital risks of material trade of state-owned enterprises
State-owned enterprises face many uncertainties in material trade activities, such as industrial policy adjustments, market price fluctuations, trade partner defaults, imperfect contract management, etc., all of which can bring trade capital risks to enterprises and increase the possibility of capital losses.
At the same time, in the material trade activities, some enterprises in accordance with the purchase and sale contract agreed to take the first payment after the payment of goods, both to bear the pressure of the larger funds to pay, but also to bear the pressure of reimbursement of goods, once the trade partner default, it is easy to make the enterprise into a capital turnover crisis, and even bring financial losses, seriously affecting the normal development of business activities.
For example, enterprises need to pay too large a proportion of advance payment in trade activities; the actual proportion of payment does not match the progress of material trade; trade partners change the payment account and deny having received payment, etc., will bring huge capital risks to enterprises, threatening the security of enterprise trade funds.
Strategies to deal with the capital risk of material trade of state-owned enterprises
1. Set up a risk management institution for material trade
State-owned enterprises should set up a risk management institution for material trade activities, with members consisting of party and government cadres, material management department, audit department, finance department, discipline committee and other personnel. The responsibilities of this institution are as follows: to preferably select trade partners, determine the scale and form of trade, strengthen the management of material purchase and sales contracts, and ensure that the contract terms are expressed in a rigorous and complete manner; to assess the financial risks that exist in material trade, and provide a reliable basis for the enterprise to make correct business decisions; in material trade activities, if major events occurring on both sides of the trade may have a serious impact on trade activities, it is necessary to promptly Capital risk assessment, and send an inspection team to investigate the business situation and financial situation of the trade target, to minimize the capital risk.
2. Strengthen customer situation investigation
State-owned enterprises in the material trade activities to select the best trade partners, the formation of a joint inspection team, the initial determination of the customer field research, a comprehensive grasp of the customer’s qualifications, verify the customer’s business license, tax registration certificate, legal representative ID card and other documents, to understand the customer’s business scope, business conditions, production scale, business reputation, and the ability of both sides to perform, capital risk, trade activities The economic benefits generated by the trade activities are evaluated. During the material trade activities, the performance of the trade partners should be monitored and the existence of changes in legal representatives, abnormal production and operation activities and other significant events in the trade activities should be paid attention to at all times.
3.Improve capital risk assessment mechanism
State-owned enterprises should assess capital risks throughout the whole process of material trade activities, including the inspection of trade partners, negotiation of purchase and sale business, contract signing and performance, etc., make scientific predictions on the capital risks faced by the enterprise and take risk prevention measures in advance.
State-owned enterprises should monitor the fulfillment of contracts by trading partners in trade activities, identify potential risk factors, make payments in strict accordance with the payment methods and advance payment ratios agreed in the contracts, ensure that the payment ratios are in line with the progress of supplying materials, guarantee the safety of enterprise trade funds, and reduce the risk of delayed confirmation of payments or delayed supply of materials by trading partners.
In addition, if the risk assessment of the material trade finds that the capital risk is large and easy to make the enterprise fall into the operating difficulties of broken capital chain, the trade business should be reasonably withdrawn.
4. Improve the early warning mechanism of capital risk
State-owned enterprises should build a perfect capital risk early warning mechanism for material trade activities, follow the principle of combining quantitative and qualitative analysis, improve the risk early warning index system, and improve the effectiveness of risk early warning.
First, do a good job of market risk early warning. Enterprises should collect and organize industry dynamic information, grasp the changes in national economic policies, and monitor the financial transactions and operating conditions of trading partners in order to make scientific predictions on the degree of market risk.
Secondly, strengthen the early warning of financial risks.
Enterprises should assess the financial risks faced in their own operations, build up a perfect financial risk index system, and predict the degree of financial risks by obtaining relevant indicators such as asset structure, operating capacity, profitability, solvency, cash flow, etc.
5. Develop financial risk disposal plan
In the material trade activities, enterprises should make risk disposal plans on the basis of scientific prediction and assessment of capital risks, combined with industry characteristics and business development needs, including the following three aspects.
First, the development of risk plans for changes in national industrial policies. When the national industrial policy macro-adjustment, enterprises should quickly make rapid response to industrial policy, and trade partners to negotiate the adjustment of material purchase and sales contracts to reduce the adverse impact of industrial policy adjustment on trade activities.
Second, the development of risk plans for market price fluctuations. When the market price fluctuations are large, enterprises should negotiate with trading partners to adjust the trade price, re-agreed payment time or way, so as to reduce the risk of enterprise funds. Third, to develop a risk plan for the trade party’s default. If the trade party defaults, the enterprise can immediately stop the advance payment and take measures to recover the payment.
Conclusion
In conclusion, state-owned enterprises should strengthen capital management, combine the characteristics of material trade activities, develop capital risk response strategies, ensure the safety of enterprise funds, and improve the efficiency of the use of enterprise funds.
In order to further enhance the core competitiveness of enterprises in the market economy and eliminate the hidden risks, enterprises should establish a risk management mechanism, strengthen the qualification investigation of trade partners, and enhance risk assessment, risk warning and the implementation of risk plans, so as to guarantee the smooth development of enterprise material trade activities.