The Discount Rate Risk Management Research On G Pawn Company

This paper studies on the discount rate in pawn industry. It focuses on three aspects:how to determine the discount rate; the composition of risk factors and how to deal with these risk factors. Based on the actual operation of the company, it promotes some recommendations and methods for risk management of pawn industry and initial explores the pawn risk management system which established on the discount rate.This article first explains pawn concepts. It reflects the fundamental characteristics of pawn by comparing with the banking business. What’s more, it clarifies the characteristics of the business, especially the high-profit high-risk characteristics, which determines the importance of risk management in the pawn industry. By doing this, the determination and risk control of the discount rate stands out.This paper focuses on in-depth analysis on the basis of the determination of discount rate during the pawn process, the composition of risk factors and the management measures targeted these risk factors. It studies on "discount of pawn" and "renewal of pawn" these two key areas. It systematically and comprehensively discusses the management direction of pawn risk and summed up some control points in system, technology and management at different levels.For the object of the study-G Pawn Company, this paper firstly explains the company’s background and development process, which paves the way for further study of the enterprise risk management. Through the explanations of the company’s background and operations, it fully confirms the industry characteristics described earlier. With emerging risks, the risk management issues of discount rate are particularly prominent. Furthermore, take "discount rate" as criteria, it listed several typical cases and analyze them one by one, which expose the risk management loopholes of the enterprise.In order to solve the issues of G pawn companies in risk management, this paper, on the basis of the foregoing analysis of discount rate, puts forward a series of views and suggestions on how to strengthen and improve G pawn companies. At the same time, it concluded that management of the discount rate control is a core point in pawn industry, which provides some references for the theoretical study of pawn risk management in the future study.