Research On Risk Management Of Consumption Finance Business Of KC Company

KC is a well-known Internet service provider in Shandong Province.In 2016,it undertook the consumer staging business of BD Financial Corporation and established the KC Financial Division,which aims to provide students and women with grants and medical and beauty installment loans.Since the operation of the business department for two years,KC has established a cooperative relationship with a large number of education,medical and beauty institutions and quickly released funds with its extensive old customer base and good reputation,becoming the leading enterprise in Shandong Province.In the early stage of its establishment,the business department set up the risk management department to carry out risk management work.Based on long-term exploration,it initially established a risk management system with data monitoring as its core,and achieved certain results.However,with the rapid growth of the number of cooperative institutions and the total volume of business,the business unit has faced many new problems and new situations,and has also encountered several risk cases that directly cause economic losses to the business division.From the perspective of long-term development,the business unit needs to further enhance its risk management capabilities to meet the growing needs of business development.Based on the actual situation of the KC Division,this article comprehensively uses the literature method,interview method and questionnaire survey method,and conducts extensive exchanges with all employees of the business department and relevant leaders of BD Finance,and obtains a large amount of detailed and first-hand information.Through the analysis of the risk management status of the business unit by combining the comprehensive risk management framework,the following problems are found:First,the risk identification is relatively rough,there are risk omissions;second,there has not been systematic risk assessment,lack of regular risk assessment and reporting system;third,the means of risk response is relatively simple;fourth,the performance appraisal design is unreasonable,resulting in a negative Incentives;Fifth,information collection is not in place.information management and application methods are lacking;sixth,there is a lack of internal monitoring mechanism,and no internal audit posts are set.Based on the current risk management deficiencies of the business unit,this paper re-identifies the various subdivision risks of the business unit based on the process method.Through the two levels of survey evaluation questionnaires,we summarize the 10 key risks that have the greatest impact on the business unit.In response to these risks,through interviews with employees at all levels of the business unit,we analyze the causes of the above risks from multiple angles,and make corresponding suggestions from the perspectives of risk avoidance,risk acceptance,risk reduction and risk transfer to enhance the business unit's ability to respond to key risks.Finally,the article puts forward the safeguard measures of overall risk management from three aspects:internal environment,information and communication.supervision and control.The main measures include:establishing a risk culture system in line with the development of the Department and implementing the risk management system;Extensively cooperate with schools,BD institutes and headhunters to introduce professionals,carry out risk management training.and improve the professional quality of employees in many ways.Improve the original unreasonable performance policy,enrich the content of assessment;enrich information collection channels,improve information management means and management system;strengthen the construction of external communication channels,establish anti-fraud mechanism;establish control self-evaluation mechanism,set up audit department.Through the above suggestions,we hope to provide a strong guarantee for the risk management construction of KC business department,and provide reference and reference for the risk management practice of other offline consumer finance companies in the industry.