What is the debt risk of an enterprise?

Legal analysis: the debt risk caused by the external environment of enterprises mainly includes the following aspects: 1, the debt risk caused by industry protectionism. 2. Serious acts of unfair competition. 2. Debt risk caused by poor management of the enterprise itself: 1. Failed to sign the contract. 2. Poor performance of the contract. 3. Slack in exercising the right of claim.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 386 Where the debtor fails to perform the due debt or the parties agree to realize the security interest, the holder of the security interest shall have the priority to be compensated for the secured property according to law, except as otherwise provided by law.

Article 387 Where a creditor needs security in order to ensure the realization of his creditor's rights in civil activities such as lending, buying and selling, he may establish a security interest in accordance with the provisions of this Law and other laws. If a third party provides a guarantee for the debtor to the creditor, it may require the debtor to provide a counter-guarantee. The provisions of this law and other laws shall apply to counter-guarantee.