Research On The Risk Control Of Supply Chain Finance Business

Supply chain finance refers to commercial banks link the core enterprise withupstream and downstream supply enterprises by extending service for the coreenterprise in supply chain. That is to say, it takes suppliers, manufactures, distributors,retailers and the end user as a whole, so that it can provide financing services for severalcompanies on the chain comprehensively. Supply chain finance examine the entiresupply chain mainly starting from the core enterprise, it injects funds to relative weakupstream and downstream SMEs. It not only solved the problem of difficulties infinancing of SMEs effectively, but also implemented multi-win-win situation of coreenterprises, SMEs, third-party logistics companies, banks and other participatingentities in the supply chain. But at the same time, we should see the risks which must besolved by commercial banks of supply chain finance business.This paper mainly includ four parts. The first part introduce the concept of supplychain finance and its three main business modes; the second part take confirmingwarehouse financing as the research object to analyze the risk factors, including externalrisks and internal risks. External risks includes natural environmental risks, industryrisks and policy risks; internal risks includes supply chain risk, credit risk, commodityprice volatility and the risk of production capacity, operational risk, regulatory risk ofgoods and the risk of transmission of information; the third part, staring from theparties-core enterprises, SMEs, banks and third-party logistic companies involved inconfirming warehouse financing mode, design and build the index system of riskassessment of supply chain finance, and use fuzzy comprehensive evaluation method toconstruct the risk assessment model for supply chain finance, and then conductempirical analysis; the fourth part, propose appropriate risk control programs for the keyvariables of confirming warehouse financing, and then propose appropriate risk controlprograms for credit risk, operational risk, and information transfer risk of supply chainfinance.This paper construct the index system and model of risk evaluation based onconfirming warehouse financing mode, and show the validity of the model throughempirical study, and then propose appropriate risk control programs. So this paperprovide a scientific and feasible proposals for commercial banks to guard against financial risk management, and played a positive role in the sustainable development ofsupply chain finance.