Credit Risk Management Enhancing Your Bottom Line(英文版)(ppt 35頁)

Credit Risk Management Enhancing Your Bottom Line(英文版)內容提要：
Value Proposition：
Credit plays a critical role in “selling” products and services
Expands revenue opportunities with creditworthy, incremental customers
Utilizes innovative structures to support business relationships
Effective credit risk management limits credit losses and provides stable cash flows and earnings
Marketplace rewards companies exhibiting earnings and cash flow stability with higher P/E multiples
Marketplace penalizes credit induced volatility and “surprises”
Raises questions about quality of management
……

Implications for Corporate Governance：
Current organization structures to be revisited
Clarity around roles and responsibilities
Need for honesty, integrity and independence (self-regulation)
Technical expertise of people and strong management processes
Improved disclosure requirements
Importance and implementation of sanctions
Increased legislation and compliance requirements
……

Risk Monitoring：
Exposure must be complete and current
Regular reporting and updating of clients’ payment performance
Minimum annual reviews of clients should be performed
Financial conditions should be regularly assessed
Required action must be initiated and follow up must take place

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