An Analysis of the Construction of Total Risk Management Mechanism for Enterprises' Accounts Receivable
The accounts receivable that exist in enterprises’ operational activities will slow down the turnover of capitals and cause risks of bad debts, what will block the normal circulation of capitals and restrain enterprises’ healthy and orderly development. Therefore, it is vital for Chinese enterprises to emphasize on the risk management and risk defense of accounts receivable. By theoretical analysis, this paper makes comprehensive and systematic analysis on the problems that exist in the risk management of accounts receivable and the relevant reasons. For the problems, this paper puts forward a brand-new idea of total risk management and discusses this idea in detail. So, this paper may serve as a valuable reference for Chinese enterprises’ risk management of accounts receivable.