Study On Risk Management Of Export Letter Of Credit Business Of S Bank Suzhou Branch

With the continuous progress of globalization and cooperation,trade between countries is increasing.As a settlement method to reduce the risk of both importers and exporters,letter of credit becomes the preferred option in cross-border trade.At the same time,the bank dealing with the transaction under L/C bears tremendous risks.This paper combs the operation process of the exporter letter of credit business of S bank,Suzhou branch,and analyses the risks in all aspects of business process,including the risk caused by external factors:political risk,market risk and fraud risk,and the risk caused by internal factors:operational risk,which is manifested in five aspects:inappropriate performance appraisal system,imperfect training mechanism,insufficient risk awareness of business personnel,insufficient sense of responsibility of business personnel,business personnel do not have the desire to continue learning.Through data statistics and interviews with relevant business personnel,risk evaluation index method is used to design risk evaluation index system.This paper divides the possibility of risk occurrence and the impact of risk on business into the same level,qualitatively assigns weights,forms risk evaluation matrix,calculataes the size of risk level.This paper further puts forward the risk management countermeasures:establishing market risk assessment mechanism,improving training mechanism,improving performance evaluation mechanism,creating business personnel and customers face-to-face communication opportunities,and adjusting organizational structure.Finally,in order to ensure the implementation of the countermeasures,the following measures are put forward:setting up a leading group of risk management,strengthening system construction,enhancing risk awareness of business personnel,and paying attention to cultural construction,in order to provide some help and ideas for banks to prevent and reduce risks.