Research On Risk Management Of S Bank’s Green Credit Business Based On FAHP Method

Environmental problems have always been the focus of global attention,and how to reduce the adverse effects of social subjects on the environment is a long-term exploration problem of all sectors of society.Green credit can promote the sustainable development of social economy,but the green credit business of commercial banks in China is at the initial stage of development,its management is not perfect,and there are still many risks.Green credit risk management of commercial banks has attracted the attention of government,academia and financial circles.In order to solve this problem,this study takes S Bank as an example and designs a research framework from four aspects.First of all,this paper expounds the current situation of the risk management of S Bank’s green credit business,analyzes S Bank,its green credit business and risk management system,and finds out its existing problems.Secondly,to identify the risk factors of green credit business of S Bank,there are two links,mainly using literature analysis,interview,Delphi and questionnaire survey.Thirdly,it evaluates the risk grade of green credit business of Bank S,explains the meaning of each risk index based on the risk evaluation index system,analyzes and determines the weight and grade of risk factors by using AHP and triangular fuzzy number method respectively according to the given evaluation criteria.Finally,the paper puts forward the risk response methods and strategies of S Bank’s green credit business,determines the factor risk response methods according to the classification and selection model of risk response methods,and puts forward the response strategies to interpret the response methods.The interview results of S bank green credit business risk management show that some branches lack professionals,project basic data collection is difficult,and the green credit business is not well understood.Through interviews with S bank’s managers and collective evaluation by expert groups,25 risk factors were identified in refining business.After identifying the risk factors,the AHP and triangular fuzzy number method are used to calculate the collective scoring results of the expert group,and it is concluded that the overall risk level of S Bank’s green credit business is high,and the risk control point level is important.Among them,the pre-lending due diligence stage has the highest weight and risk level,which belongs to a higher risk level,the risk control point level is important,and the post-lending due diligence management stage ranks second,with the same risk level and risk control point level as pro-lending,the credit due diligence control stage has the lowest weight and risk level,and the risk level is medium,which belongs to the general risk control point.Overall,the highest risk ranking among all factors is still the availability and authenticity of green credit customer information in the pre-lending stage.According to COSO partition standard,the risk coping modes of green credit business are divided into four categories: avoidance,reduction,transfer and acceptance.Based on the results of risk grade evaluation and combined with the priority value of risk management,the risk coping modes and strategies of each factor are determined respectively.For example,the factors of availability and authenticity of green credit customer information of S Bank belong to high risk level,and the priority factor of risk management is 0.6.According to the selection criteria of coping methods,risk avoidance and risk reduction methods are selected.The cooperation between banks and environmental protection departments should be strengthened to obtain more and more accurate customer information.At the same time,the accountability mechanism should be improved,the punishment should be strengthened,and the personnel responsible for inaccurate investigation of customer environmental protection information should be strictly handled.The contribution of this study is to help S Bank identify the risk factors of its green credit business,determine the risk level and control points,and put forward the risk coping methods and strategies.The research results expand the comprehensive risk management theory and green economy theory,which is helpful to improve the risk management level of green credit business of S Bank,and has great impact on the industry important reference significance.