Transaction OB01 Credit management/Change risk category Definition of the risk category for each credit control area. Recognizing the limitations of traditional generic trade reports, credit professionals are discovering that membership in industry credit groups fills the gaps, helping them develop more complete credit histories on both new and returning customers.
The goal is a rising or positive periodic ending cash balance; Monitoring customer balances to manage account receivables (money owed to the firm from customers); and appropriate pre-qualifying processes before extending credit to customers is essential to minimizing incidence of bad debts.
The operational procedures include credit application, evaluation of credit proposal, preparation of credit proposal, forwarding to sanctioning authority, giving sanction to the client, disbursement, nursing of the credit and finally recovery of the credit from the client.
Unquantifiable Uncertainty Risk cannot be modelled because there is no data, so cannot be covered by traditional risk management practices or insurance; moreover extreme risk events (Black Swans) occur relatively frequently and result in business failures.
With comprehensive knowledge and proven success in pre-legal and post-legal debt management / collection services, and supported by a leading international commercial law firm, Australian Credit Management looks forward to assisting with the recovery of your overdue accounts.Tags: complete, guide
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