Analysis Of The Financial Warehousing Company Risk Management And Risk Identification

Most domestic SMEs are neither having collaterals, such as real estate and land in traditional credit sense nor having sufficient assets to prove its credit rating information. Most of the SMEs are experiencing difficulties to find bottlenecks in applying for loans. Financial warehousing company provides a new credit model to trade and production-based SMEs a solution in certain extent. It not only resolves the financing problems of SMEs, but also makes an inventory of the company more liquidity. With the gradual development of the financial warehousing industry, problems are also gradually revealed.Under the fast development of financial warehousing business, but with little government support, lack of government departments directly under the unified management and unified standardized industry-standard environment, financial warehousing business earning profit with bearing extra risks and responsibilities. The ratio between the full amount of financial default penalties and collected warehousing supervision service profit fees are up to100times. Risk for financial warehousing company can be described as catastrophic and devastating. As a result, risk identification and risk management is crucial for the business. Thus, how to enhance and improve the method of financial warehousing risk identification and management have an important practical meanings.This article is based on the author’s practical experience, systematically summarize and analyze both the financial warehousing industry and the company’s internal risk identification and management system. In combining the work experience and case analysis method, a number of operational recommendations and risk aversion method is introduced based on actually an risky area in the legal perspective and internal operating processes encountered in practice. Numbers of particular case studies will be analysis. Furthermore, corresponding solutions will be put forward on the basis of the analysis of case study, review and summarize of risk improvement method will be held and measured for financial warehousing business.Nowadays, more and more literature researches and analysis for operational risk management of financial warehousing business is more elaborate from a bank’s perspective, comparatively less from the financial warehousing company’s perspective. This article is based on the perspective of financial warehousing company, deep analysis the function of risk identification and risk management, given recommendations to both the mortgage and pledge in risk management operation. Proposed innovative ideas from the practical experience of the financial warehousing supervision to the company’s internal risk management system...