The Study Of The Risk Management And Control Of Jin Nan L Pawnshop

The spring up of pawn industry in our country has become a new type of field whichfinancial world pays significant attention to. As a kind of fast and convenient financingtool, pawn industry has made an important contribution of supplement to modern finance.With the rapid growth of financial economy, pawn industry has also become stronger.However, compared with mature banking industry in the aspect of risk control, pawnindustry still lacks of experience and it remains to improve.This text uses L pawning behavior as the object of analysis, and then makes a specificresearch on risk management and control in the industry. On the foundation of takingexample by relevant research results and making a comprehensive statement of relevanttheories about the risk management and control of pawn industry, I will make asummarization on the developing situation of pawn industry in our country and Lpawnshop. Then I will analyze the external and internal environment of L pawnshop,synthetically using knowledge of economics, finance and management to analyze thebehaviors like distinguishing and estimating the risks during operating. Then I willexpound its problem and the reasons why problem happens in risk management and finally,putting some solutions and suggestions forward to L pawnshop’s risk management bycombining economic development strategy and management standards of the industry.By analyzing the cases, we know that L pawnshop has paid much attention to riskmanagement, forming a frame of risk controlling which fits the corporation and hewing toit. During the developing and practicing in these years, combing its real condition, it hasbeen ceaselessly completing the system. However, in some aspects, it has still not donethose well. The risk control frame still has some problems and still needs furtherperfection. By analyzing the L pawnshop’s financial statements of the latest three years,we get the result that L pawnshop’s financial risk has been kept in the reasonable range ofthe pawn industry. It has a reasonable capital structure, a medium risk level and relativehigh profitability, which relate to the safety pawn business policy L pawnshop highlypraises, but its turnover ratio of capital still needs to be improved.