Problems of Credit Risk Management in Companies and Means of Their Solution

Abstract

Santrauka. Kredito rizikos valdymas nefinansinio verslo įmonėse Lietuvoje yra nauja ir menkai tyrinėta tema, ją nagrinėjančių mokslinių ir analitinių straipsnių yra nedaug. Daugiausia dėmesio, kalbant apie kredito riziką, tenka bankams, o nefinansinio verslo įmonės paliekamos nuošaly. Šių įmonių kredito rizikos analizė reikšmingai papildytų ir praturtintų kredito rizikos valdymo teoriją ir praktiką, kurios šiuo metu daugiausia sukoncentruotos į bankinės rizikos valdymą. Efektyvesnis kredito rizikos valdymas leistų sumažinti dėl pirkėjų nemokumo atsirandančius finansinius nuostolius, o kartu ir įmonės bankroto tikimybę. Straipsnyje tyrinėjamos kredito rizikos valdymo nefinansinio verslo įmonėse problemos ir galimi būdai šią riziką mažinti. Tyrimo tikslas -nustatyti kredito riziką didinančius ir mažinančius veiksnius, riziką mažinančias priemones, įvertinti jų efektyvumą; uždaviniai: apibrėžti nefinansinio verslo įmonių kredito rizikos ir jos valdymo problematiką; atlikti kredito rizikos valdymo problemų tyrimą; remiantis gautais rezultatais identifikuoti mažesnei rizikos grupei priskiriamas įmones, kurios galėtų būti pavyzdžiu kitoms; pateikti rekomendacijų, kaip užtikrinti veiksmingesnį rizikos valdymą; tyrimo objektas -Lietuvos statybinių medžiagų prekybos įmonės. Straipsnyje suformuluotos išvados ir pasiūlymai galėtų būti naudingi ir panašią veiklą plėtojančioms įmonėms.Reikšminiai žodžiai: tiekėjo kreditas, kredito rizika, atsiskaitymų vėlavimai, mokėjimo atidėjimo terminas, nuostolis. Abstract. The paper analyses credit risk management problems in non-financial companies and possible methods for reducing the risk. The research aims at determining the factors influencing the credit risk, establishes the measures reducing the risk and evaluates their effectiveness. A supplier credit is the principal short-term financing source of small and medium-size companies given the insufficient credibility and collaterals of these companies in order to obtain a credit in financial markets. Meanwhile, supplier credit means that suppliers not only finance their customers providing them with cheap resources, but also assume all the credit risk related to financing. In order to find out the ways companies assess this risk, what measures they use to manage it and the effectiveness of these measures, we carried out a research on credit risk management in building materials trading companies in Lithuania. In the course of the research, two major problems the companies confront with were identified, namely the delay of payments and losses related to so-called "bad debts". Delays PROBLEMS OF CREDIT RISK MANAGEMENT IN COMPANIES AND MEANS OF THEIR SOLUTION Meilė Jasienė¹, Antanas Laurinavičius²

The Issues of the Management of Receivables: Lithuanian Case

“…The findings of the research, carried out by Jasienė and Laurinavičius (2009), revealed that business companies do not use debt risk reduction measures in the following cases:…”

“…According to Jasienė and Laurinavičius (2009), more than a half of managers admit having had losses determined by the disregard of debt reduction measures. The fact that a substantial part of business companies are inclined to risk is disclosed by the tendency that only nearly one-third of companies would not sell their products to customers about whom they have acquired any negative information (Jasienė, Laurinavičius 2009). This reveals inclination to assume the largest part of the risks related to sales.…”

“…Considering the nature of receivables, they can be treated as a substitute to bank loans (Badu et al 2012). Hence, the level of receivables is likely to increase during the periods of economic recession when the volumes of issued bank loans decline (Jasienė, Laurinavičius 2009). …”

“…The economic crisis has also had a negative impact on businesses that are still dealing with the problem of high level of receivables. Although it is the case that particular rate of risk is inherent to business, credit risk is one of the types of risk that can have the most detrimental effect on the solvency of business companies (Jasienė, Laurinavičius 2009). Under such circumstances, it is necessary to focus on the analysis, management and control of receivables because the efficiency of debt management has a direct impact on a company's turnover and other critical operational indicators.…”

The Evaluation of Trade Credit Insurance in Lithuanian Business Market as a Credit Risk Management Tool

“…However, Rutkauskas et al (2008) argues that in most cases, credit is still described as an economic-monetary relationship. According to Jasiene and Laurinavicius (2009), usually, there are commodity and monetary forms of credit distinguished. Pike and Cheng (2001) describe trade credit as a process comprising the combined commodity-financial transaction.…”