Research On Financial Risk Management Of A Small Loan Company

Small loan company is a new product of financial innovation and reform in China,It not only enables private capital to carry out financial activities legally,but also alleviates the difficulties of financing of small and medium-sized enterprises.Rapid development has also brought certain financial risks to small loan companies,including asset quality risk,liquidity risk,capital risk and financial sustainability risk.These financial risks are closely related,which greatly increases the difficulty of the risk management of small loan companies.In order to improve the sustainable development ability of small loan companies,it is of great significance to systematically study the financial risks of small loan companies in China.This paper is divided into two parts: theory and practice,taking A Small Loan Company as the object of study,through analyzing its financial data and main financial indicators,analyzes the existing problems and causes of financial risk management,and puts forward corresponding countermeasures.Firstly,this paper analyzes the research status at home and abroad,on this basis,we study the related micro credit,financial risk and financial risk management theory,including financial risk types,characteristics and transmission channels of small loan companies.Secondly,on the basis of sufficient theory,through the investigation and data collection on the A Small Loan Company,this paper describes the company's background and financial management problems,including the company's basic situation,risk control environment,business development,financial data and major financial indicators,and pointed out the present problems in the financial management of A Small Loan Company.Asset quality risk management is faced with problems such as difficult liquidation of non-performing assets,normalization of credit default events,increased regional operating risk.In liquidity risk management,there are some problems,such as lower solvency,lower liquidity of assets and simple management methods.In addition,other problems,such as lower profitability,lower operating capacity and low management efficiency,threaten the sustainable development of the company's finances.The company's capital risk management has no problem at the moment.The causes of the problems of asset quality risk management include increased uncertainty in the macro environment,the imperfect credit system and the weak ability to prevent and control loan risks;the causes of liquidity risk management problems includes liquidity risk management consciousness,limited financing channels;the causes of the financial risk management problems includes sustainable profit structure is not reasonable,the operation cost remains high,market competition and the low level of management.Based on the above analysis,this paper puts forward some measures and suggestions for financial risk management.In order to improve the quality of assets,A Small Loan Company can take measures such as strengthening credit risk management,strengthening the treatment of non-performing assets,suspending new loans in risky areas and innovating mortgage methods,etc.To maintain a reasonable liquidity level,A Small Loan Company should strengthen liquidity risk management awareness,build liquidity risk early warning system,conduct liquidity stress test,broaden financing channels and other measures;In addition to the above measures,A Small Loan Company should also develop new business and sales channels,develop Internet Finance,reasonably control operating costs,raise the level of management to maintain financial sustainability.Most of the existing cases focus mainly on sustainability,risk management,financing channels and legal policy,the cases of small loan companies from the angle of financial risk is less.Based on the particularity of the financial risk management of A Small Loan Company,this paper puts forward some opinions on how to improve the level of financial risk management of A Small Loan Company,and hope to have certain reference significance to other small loan companies.