The Research For Pawnshop Financial Risk Management Method

As a special financing way which is specific goods or property rights mortgageor pledge, Pawnshops, with the characters of small, short, simple, flexible, play apositive role in satisfying the financing needs of Small and micro businesses andresidents, promoting economic and social development. In recent years, with thedevelopment of financial economy, pawnshops also ushered in the development of the"golden period", no matter quantity, or business scale are all achieved good results.However as of the lack of technical personnel who specialized in financing andinvestment risk management, as a result, Pawnshops lack effective risk managementmeans, finally lead to Pawn industry business single, narrow coverage. The papercombines theory analysis and practical analysis, follow the thinking line of "find theproblem-research the problem-solve the problem", use literature study, case study andnormative study method, make argument. The research content is arranged accordingto the general research mentality. First of all, the paper summaries the current researchfrontier and problem to be solved through literature review; secondly, the paperanalyses pawnshops’ business and its financial risk, knowing pawnshops’management characteristics and the particularity of its financial risk; thirdly, the paperanalyses various risks quantitative management way through sum up large financialinstitutions financial risk management methods, determines pawnshops’ financial riskmanagement style; finally, combining with the particularity of pawnshops, the paperrefers to and revise feasible financial risk management method, and constructsoperable pawnshop financial risk management and control method, and puts forwardsome reference suggestions in risk management specification.