The “2020 Enterprise Digital Treasury Management Online Summit,” hosted by the Accounting and Finance Professional Committee of the Hong Kong Chinese Enterprises Association and co-organized by Yonyou Hong Kong, was successfully held on May 14th. Two treasury management experts from Yonyou Network shared their insights on debt risk prevention and control, and overseas state-owned asset financial supervision models.
The sudden outbreak of the pandemic has brought new challenges to economic development and the cash flow of many enterprises. Enterprise treasury management has been particularly affected, facing immense pressure and challenges. Debt risk refers to a situation where an enterprise lacks short-term working capital, is unable to repay maturing debts, and has an excessively high debt-to-equity ratio. Zhang Wu, a treasury management expert from Yonyou Network, pointed out that enterprises with higher debt ratios are more prone to debt risk. There are many factors influencing debt risk, mainly categorized as follows:
- Internal debt-related factors: debt size, interest rate, debt structure, etc.
- Internal non-debt-related factors: operating conditions, strategy, etc.
- External factors: macroeconomic conditions, socio-political factors, regulatory requirements, etc.
In addressing and preventing corporate debt risk, corporate financing management faces significant challenges. For example, the large scale of financing, the diversification of financing channels and products, and the difficulty in managing these factors; difficulties in collecting financing data; and a lack of ability to analyze and control financing costs, etc., exhibiting the following characteristics:
New technologies have brought about significant changes in financing models:
- Standardized financing data
- Transparent financing process
- Integrated investment, financing, and capital management
- Dynamic decision support
- Integrated risk control
These changes effectively reduce the risks of debt financing.
Following this, another treasury management expert, Chen Zhidong, shared his insights on overseas capital management. Chen Zhidong pointed out that the core treasury needs of overseas companies include the following:
To meet the above needs, a comprehensive IT planning and construction is an indispensable part. Yonyou’s funds management solution covers organizational positions, management models, systems and processes, partner banks, and information systems. Multifaceted data integration helps build a comprehensive funds analysis and monitoring platform, including cash balance analysis, financing principal and interest repayment analysis, and early warning of due principal and interest, enabling real-time monitoring.
Interested in learning more about how Yonyou achieves risk control management? Call +852 2122 9886 now to contact our treasury experts.
