Research On Financial Risk Of Light Assets Business Model

With the development of globalization, there become more and more competition among enterprises, how to obtain greater profitability, faster pace of development and more sustained growth momentum is the key issue companies need to solve. Currently,a way to create more value for the enterprise, asset-light business model begins to receive attention,asset-light business model enterprises came into being and developed rapidly. Since appears in 1970 s, asset-light business model has brought a lot of business growth miracle.Traditionally, asset-light business model is more concentrated in knowledge-intensive industries, in recent years, asset-light business model began to be adopted by more and more industries. Admittedly, asset-light business model does meet the characteristics of a modern enterprise business model, it meets the social meticulous direction of industrial development division, and controls the industrial chain among the core values. This is necessary when economic access to the knowledge era. However, a large amount of intangible assets requires a higher level of financial risk control.Compared with the traditional business model, asset-light business model has a smaller proportion of fixed assets, the company’s assets are concentrated in the intangible assets. Asset-light business model get rid of the slow liquidity characteristics of fixed assets, accelerate the flow rate of corporate assets. Quick liquid assets brings corporate profits and a rapid increase in size.The special nature of the structure of assets, brings many competitive advantages, but the special nature of the asset structure can also hurts,transfer enterprise’s business model blindly will shake the foundation. On the angle of asset structure view, compared to the traditional business model, asset-light business model has a lower proportion of fixed assets,reducing their ability to resist risks; On the angle of supply chain point of view, the relevant production processes separation is not good to their own product quality control,and also easy to bring market risk.A large amount of intangible assets inquires a higher level of the financial risk control. Lighter asset and a more profitable feature hide the financial risk of asset-light business model. By discussing asset-light business model and it’s financial risk, we will make recommendations on asset-light business model financial risk control.