Research On Risk Control Of Supply Chain Finance By The Case Of Commercial Bank N

With the continuous development of information technology, market competition has converted from individual companies to that of industrial chains. The conventional lending operations in commercial banks have become a "red sea" resulting from over competition. Hence, the enabler of keeping lucrative and maintaining competitiveness lies on the innovation of product and business model leading to the creation of "blue ocean". As the new financial business, supply chain finance has become new proliferation of commercial banks. In recent years, supply chain finance has been focused on domestic or foreign banks and achieved a rapid development. As conventional commercial bank may only pay attention to the single enterprise, while supply chain finance has improved the efficiency in light of integrating information flow and cash flow to reallocate the source in the supply chain. Risk is the eternal theme for commercial banks. Supply chain finance faces risks of uncertainty loss because the risk transmission of supply chain is inevitable. Risk of supply chain finance may result in large damage, even the emergence of "butterfly effect", and threaten "ecological balance" in the supply chain finance. As the downturn phase of the current global economy and the increasing risks of the supply chain finance, the research of supply chain finance can be helpful to avoid and reduce the operation risk.As an emerging business field for commercial banks, researches on the risk management of supply chain finance has been extensively studied, but limited on the description and summary of the measures to risks. To this end, through the investigation on domestic and foreign works of the supply chain finance and the comparisons among conventional lending business, this paper analyzes risks of bank "N" and makes a conclusion. The lacks of specific forms, causes and control measures of the risk can be figured out and it also design an optimization system of supply chain finance. It is worth noting that, this paper analyzes the development of trend data, evaluates the present situation and identifies the business risk in terms of a case of supply chain finance in bank "N". During the process of optimization design of risk control system, this paper puts forward the framework of the information system in supply chain finance, enriches the connotation of risk control system of supply chain finance business. Based on the aforementioned, the main contributions can be summarized as follows:Firstly, this paper makes statement on the process and product system in bank N. In order to solve finance problem among some enterprises, new methods and measure shave been provided to have new access to funds. Secondly, this paper summarizes kinds of risks and causes of supply chain finance in bank N. Risk is the top priority of credit management in bank N, especially in the downward phase of economic situation. It is premise of solid risk control construction to identify the new accurate risk and analyze the factors. Thirdly, the risk control system of supply chain finance in bank N is optimized. Because it is new field for bank N, and operation process of supply chain finance is complicated, bank N need more practice in continuous improvement of process and business management system. In order to establish a comprehensive risk control system of supply chain finance, more measures need to be made, such as execution of rules and regulations, supervision and inspection.