State-owned enterprise business trade risk and prevention and control measures

1. Market risk refers to the possibility of potential losses caused by changes in market factors such as changes in the market price of products, changes in supply and demand, or changes in the exchange rate;

2. Credit risk is also known as the risk of breach of contract, which refers to the unwillingness or inability to fulfill the contractual terms and conditions of the partner, and constitutes the possibility of default;

3. Default risk refers to the possibility of losses suffered by the trading enterprise due to the unwillingness or inability of the partner to fulfill the terms of the contract;

3. Compliance risk refers to the risk arising from the enterprise's trade in violation of laws and regulations or prohibitions within the Group;

4. Operational risk refers to the possibility of losses that may be incurred by the enterprise due to imperfections or malfunctions of the internal procedures, personnel and systems, or external events during the course of the trade business.

In view of the above risks, we propose the following measures to cope with the risks:

1. Further improve the customer evaluation mechanism. Uniformly organize and analyze customer information resources, strengthen the credit investigation of cooperative customers, and fully investigate and understand the financial strength, performance ability, market integrity, business conditions and other aspects of the cooperative party before the business is carried out, so as to understand the customer's situation in an all-round and multi-dimensional manner, and to guard against and cope with fraudulent behaviors lurking in the operation. In the course of business, we try to select centralized enterprises, large state-owned enterprises and strong and reputable enterprises. In the process of business development, we try to select central enterprises, large state-owned enterprises and private enterprises with strong strength and good reputation to carry out trade business; we establish customer files and file ratings for customers with whom we have cooperated for a long period of time, and prioritize business cooperation with them.

2. Further improve the market evaluation mechanism. Broaden the channels of market research and information collection on the industry, in-depth analysis of market dynamics. Price trends and market trading volume, timely grasp of international and domestic political, economic, legal and other policy trends, study of risk factors may lead to risk events. Before the start of the business, the professional business team of the company's enterprises to collect relevant market information, market research and market analysis, real-time analysis of the recent market dynamics, price increases and decreases, market trading volume and other real-time analysis and judgment, real-time guidance for trade transactions, and effectively prevent market risks and policy risks.

3. Cautious use of credit policy. In the actual business operation process, try to pay first before goods or cash on delivery. If you need to take the mode of goods before payment, first of all, analyze the financial status of the partner, credit, solvency, assets that can be used as collateral, etc., to develop the appropriate credit standards; secondly, to determine the reasonable credit period of the customer, according to the nature of the business and the partner's credit, in order to expand the volume of trade for long-term cooperation with the customer to give a certain period of credit; lastly, the trade business receivables, take various measures to try to recover on time, and to ensure the safety of the customer. Finally, after the accounts receivable in trade business, we will take various measures to try our best to recover the accounts on time, and require the partners to provide collateral guarantee not less than the amount of the goods as far as possible.