Project Background

A tap water production and supply company is a large state-controlled water group, mainly engaged in urban tap water production and supply, sewage treatment, water environment treatment and other businesses, and its service scope covers many provinces and cities across the country. In recent years, the company has actively responded to the national water-saving action plan, continuously improving the level of conservation and recycling of tap water production and supply, and at the same time accelerating market-oriented reforms, introducing private capital and foreign water companies to enhance the competitiveness and efficiency of the company.

Customer pain points

The enterprise faces the following credit risks in the development process:

Due to the particularity of the tap water production and supply industry, the enterprise needs to cooperate with the government, financial institutions, suppliers, customers and other parties, involving a large number of credit transactions, if there is a default or fraud, it may lead to huge losses.

Due to the public welfare of the tap water production and supply industry, the enterprise needs to abide by the relevant national and local laws and regulations, such as water resources management system, water supply price management system, environmental protection system, etc., if there is a violation of laws or regulations, it may lead to punishment or litigation.

Due to the competitiveness of the tap water production and supply industry, the company needs to compete with other water companies in the market, such as bidding, project cooperation, technological innovation, etc. If there is unfair competition or intellectual property infringement, the company may lose market share. Or reputation.

Project Purpose

2023Year6In January, in order to help the enterprise effectively identify, evaluate, control and prevent credit risk, improve credit management level and credit value, Shangpu Consulting provided it with a set of credit risk management programs, mainly including the following aspects:

Establish a sound credit file system to collect, collate, update and analyze all kinds of credit information related to enterprises, such as basic information, credit information, cooperation information, legal information, etc.

Establish a scientific credit evaluation model, according to different credit objects and credit scenarios, adopt a combination of quantitative and qualitative methods, comprehensively evaluate the credit status of the enterprise itself and its partners, and give the corresponding credit rating and credit report.

Establish an effective credit control mechanism, and formulate corresponding credit control strategies and measures according to different credit risk levels and types, such as setting credit lines, signing credit agreements, and taking guarantees or insurance.

Establish a timely credit monitoring system to monitor the credit changes of enterprises and their partners in real time through network platforms, data sharing, information exchange, etc., and to detect and deal with credit anomalies or crisis events in a timely manner.

Research object

In order to ensure the quality and effectiveness of the project, Champ Consulting conducted research on the following categories of objects:

The internal management personnel, financial personnel, business personnel, etc. of the enterprise understand the basic situation of the enterprise, the current situation of credit management, credit risk claims, etc.

The main partners of the enterprise, such as government departments, financial institutions, suppliers, customers, etc., understand the enterprise's credit performance, credit needs, credit problems, etc.

The company's main competitors, such as other water companies, emerging water companies, etc., understand the industry's credit environment, credit standards, credit trends, etc.

The company's relevant experts and consulting agencies, such as water industry associations, credit rating agencies, credit management consulting companies, etc., to understand the industry's credit norms, credit methods, credit cases.

Project Content

According to the research results and customer needs, Shangpu Consulting has provided the following project contents for the enterprise:

Construction of credit file system: a credit file database including itself and its partners has been established for the enterprise, and all kinds of credit information have been collected and sorted out, such as basic information, registration information, financial information, tax information, social security information, administrative license information, administrative punishment information, judicial judgment information, litigation and arbitration information, bad record information, cooperation evaluation information, etc., and updated and verified regularly.

Development of credit evaluation model: A credit evaluation model based on multi-factor weighted comprehensive scoring method is developed for the enterprise. According to different credit objects and scenarios, different evaluation indicators and weights are selected, such as asset-liability ratio, current ratio, operating income growth rate, profit margin, solvency, operating stability, operating standardization, social responsibility, etc., and a five-level classification method is adopted (AAA、AA、A、BBB、BB) to rate the credit status and generate the corresponding credit report.

Credit control mechanism design: A credit control mechanism based on the principle of risk prevention and the principle of incentive and restraint is designed for the enterprise. According to different credit risk levels and types, different credit control strategies and measures are formulated, such as setting reasonable credit limits and deadlines, signing perfect credit agreements and terms, adopting effective guarantee or insurance methods, and implementing dynamic credit adjustment and reward and punishment systems.

Implementation of credit monitoring system: a credit monitoring system based on network platform and data sharing has been implemented for the enterprise. Through data docking with authoritative institutions such as the national credit reference center and China credit insurance credit platform, it can obtain and analyze all kinds of credit changes related to the enterprise in real time, and timely notify the relevant personnel of the enterprise through SMS and e-mail, And provide corresponding treatment suggestions.