Research On Risk Management Of Domestic Factoring In Z Bank

With the development of credit transactions among enterprises,the total amount of receivable accounts is accumulated,and the financing channels of enterprises are increasingly diversified.As an important part of the accounts receivable financing mode,the domestic factoring business is well known and used by more and more enterprises.Z bank is the leader in the joint-stock commercial bank.After the domestic factoring business is rising in our country,Z bank has become one of the first several banks to carry out this business.Especially in recent years,the domestic factoring business of Z bank has been developing strongly.The rapid development of the domestic factoring business has brought considerable profits to the Z bank,but as the economic growth rate falls down,the financial risk has come to the surface gradually.The domestic factoring rate of Z bank has reached an unprecedented height.This result is caused by many problems of risk management.First,the risk management process of Z bank is not perfect.The risk identification is not sufficient,the risk assessment is inaccurate,and the means of risk control is single.Secondly,the risk management system is not sound,there must be a system,the system must be checked,the inspection must be accountable,and the Z bank not only is not strict in the internal control and the power and responsibility is not clear on the risk management problem;in addition,the Z bank is lacking.Rooted in the risk management concept of employees,it is difficult to balance risks and benefits.Finally,the existing institutional framework has resulted in low efficiency of risk management.There are many reasons for the risk management of Z bank's domestic factoring business.First,the chaotic organizational structure not only affects the final deliberative decision,but also reduces the efficiency of risk management and is not conducive to the smooth development of the risk management process.Second,the Z bank is still using the historical loss model to raise the risk management.The sensitivity of the tools is insufficient,and it is slightly backward compared with other banks.Third,after the loan management in the form of risk early warning and feedback mechanism effect reduction;fourth,the low professional quality of personnel is the main factor affecting risk identification,assessment,monitoring,control and control of many links.In order to survive in the increasingly competitive market environment,Z banks need to improve their own risk management level,making the domestic factoring business not only increasing,but also improving the quality.First of all,by optimizing the organizational structure,the responsibilities and responsibilities of all levels of personnel are clear,while improving the efficiency of risk management.Secondly,do well due diligence,set up customer entry threshold,improve follow-up tracking frequency to fully identify and effectively control risks,so as to improve the risk management process.In addition,differentiated business processes are implemented for different customers,internal supervision is strengthened,and accountability is put in place to improve the business system and risk management system.Finally,upgrade the risk management tools and strengthen personnel training to improve the risk management software and hardware facilities of Z bank.