Research On Risk Measurement Of Order Financing In Transnational Supply Chain

Supply chain finance (SCM) from the beginning of this century truly independent business concept to today’s rapid development is only ten years, but the speed of its development, especially since the financial crisis in recent years, has become one of the most dynamic business banking. As the organic combination of the financial industry and logistics industry, the two promote each other, common development, financial companies and logistics companies, manufacturers, bring the win-win situation of the dealers and other enterprises in the supply chain, for small and medium-sized enterprises to provide a set of feasible and effective for the solution in the financing choice.In today’s economic globalization environment, linked together all aspects of supply chain, the chain upstream and as an indispensable raw material suppliers or manufacturers for many small and medium enterprises, they are the whole supply chain can provide the basis for the realization of efficient operation. But our country small and medium-sized enterprises, especially small and medium-sized enterprises play a role play a decisive role in the present stage of export-oriented economy in our country at present, and failed to obtain the corresponding financial treatment. Supply chain finance can provide a new perspective to solve this contradiction, this paper will combine the supply chain finance as well as the characteristics of transnational supply chain, analyzes characteristics and connotation of purchase order financing mode, carries on the analysis to the purchase order financing risk from banks and other financial institutions from the perspective of the insurance actuarial theory, Credit Risk+ model for credit the risk management of foreign exchange settlement order financing business based on example based on this study, provides a method of risk measurement to the purchase order financing used in transnational supply chain business.This paper is divided into four chapters, the first chapter illustrates the background and significance of topics, mainly through the study of the financial supply chain theory, combined with the development of supply chain finance, as well as the application of order in the modern financial supply chain finance practice, give out the supply chain finance and the practical significance of purchase order financing and research value from the overall. The second chapter introduces the financial supply chain, the current mainstream business model, especially the purchase order financing business model, elaborates its characteristic different from traditional supply chain finance mode. The third chapter focuses on the analysis of supply chain finance business of financial risk in banks and other financial institutions. Using the theory and method of risk measurement of commercial banks in the new Basel agreement in the actual measurement, the Credit Risk+ model in credit risk, on the orders of the financing business to the bank financing the financial risk of the definition and analysis. The fourth chapter by setting the purchase order financing business case, by two fork tree model with inverse risk measurement path to analysis is a financial institution, combined with the model Credit Risk+, through the analysis of examples in different process of financing, the occurrence probability of each risk adjustment, the frequency distribution of the income of the bank the histogram, and the obtained from the relationship between the changes of a certain probability of risk of supply chain business process and the financing bank earnings distribution.In this paper, through the supply chain finance business mode of presentation, and combined with the background to the current economy, discuss the supply chain finance application extends to the transnational supply chain, in detail to banks in the global supply chain in the purchase order financing are facing the risks of SMEs are defined, finally, based on the foreign currency settlement order financing example, a comprehensive evaluation of credit risk, the financing process of operational risk, as well as the influence of market risk to bank loan recovery.The main innovation of this paper is the transnational supply chain in the market risk, mainly refers to the exchange rate risk, into the system of bank risk assessment, in accordance with the latest technology of the new Basel Capital Accord, credit risk model with Credit Risk+ algorithm, discussed the LGD and default probability, and qualitatively analyzed by BS model bank facing the distribution of risk exposure.