Research On Financial Risk Management Of YF Microcredit Company

With the development of social economy,the number of enterprises in our country has blowout-like growth,especially the rapid development of small and medium-sized enterprises,which has made tremendous contributions to tax revenue and employment,and has become an indispensable part of our economic development.However,the average life expectancy of small and micro enterprises in China is less than three years.More than 60% of them are forced to leave because they can not finance.In this environment,microcredit companies are rapidly rising in the financial market with their small,decentralized,short-term and fast business characteristics.Traditional banking financial institutions require higher qualifications of the loan recipients,and the loan procedures are cumbersome.Most small and medium-sized enterprises and individuals are difficult to obtain financing from them.The emergence of microcredit companies as a help to poverty alleviation can effectively solve the financing difficulties of farmers,individual businesses and small and medium-sized micro enterprises.They not only expand the financing channels of financial markets,but also avoid the drawbacks of policy-oriented poverty alleviation.They can also play a role in cracking down on illegal private lending and promoting the sound development of financial markets.In August 2014,the first microcredit company listed on the "New OTC Market".In the past five years of development,more than20% of the companies chose to withdraw from the market or run away.The problem of risk control has become more and more prominent.It is of great significance for the long-term development of microcredit companies to study the financial risk management of microcredit companies.In this paper,we use case analysis method to study YF microcredit company on financial risk management.Firstly,this paper collates the research status and relevant theories of financial risk management of microcredit companies at home and abroad,which provides a theoretical basis for this study.Secondly,this paper analyses the financial risk of YF microcredit company,expounds the current situation of the industry and the overall development of the company,and specifically analyses thefinancial risk of the company from four aspects: asset quality risk,financing risk,profit risk and credit risk.Then,it summarizes the current situation of financial risk management of YF microcredit company from four aspects: organizational structure,current system,operation process and information system,and points out the existing problems,and then expounds the causes of the problems from both internal and external aspects.Then,aiming at the above problems,specific and feasible improvement measures are put forward,especially in improving business operation process,in-depth excavation of detailed operation steps,in order to effectively control financial risk in each operation link.Finally,in order to strengthen the management of corporate financial risk,we put forward safeguard measures from three aspects:management environment,management culture and management information system to ensure the effective implementation of financial risk management.Through the analysis of YF microcredit company's financial data,this paper finds that the asset quality of YF microcredit company has a downward trend,the financing effect is not good,the company's operating performance is declining,the profitability is declining,the ratio of accounts receivable is increasing year by year,and the credit risk is increasing.In addition to the above financial risks,YF microcredit company also has shortcomings in financial risk management.The company's management organization structure arrangement is not reasonable enough,the separation of responsibilities is not in place,and the staffing is unbalanced;there is a lack of systematic and perfect financial risk management system and supporting information system;and the implementation of control activities in loan business is not in place.As for the problems existing in YF microcredit company,this paper hopes to improve the financial risk management of the company by building an efficient financial risk organization structure,improving the financial risk system,improving business operation process and strengthening human resources management measures,and by creating a good financial risk management environment,cultivating the internal financial management culture and establishing and improving the company's financial risk management.Financial risk management learning system to ensure the effective operation of corporate financial risk management.