TK Group Supply Chain Financial Risk Management Optimization Research

Supply chain finance(SCF)is a form of self-liquidating trade finance based on physical transactions,which combines business processes,logistics,information flow and capital flow.Core enterprises are the basic objects of SCF services.They have good business reputation,sufficient cashflow,leading industry position,so they have higher credit rating among financial institutes.In the area of supplier financial services,financial institutes can make use of core enterprises’ market status,by which they can improve small and medium enterprises’(SMEs)credit rating and alleviate SMEs’ shortage of business liquidating.TK Group is primarily engaged in the construction of industrial parks,it’s a business conglomerate of integrated goods supply,modern logistics,warehousing distribution and supply-chain consulting services.TK Group carries out its SCF businesses in three ways: warehouse financing,factoring financing and reverse factoring financing.TK Group approach to business risk management is to identify and evaluate risk factors based solely on hands-on experience,without analyzing the correlation between risk factors that cause business losses and the business itself.So,this paper identifies and determines the key risk factors of TK Group’s SCF business through interviews,literature research the Delphi method and questionnaires.Meanwhile,by using SPSS to conduct principal component analysis and logistic model analysis,this paper studies the importance of credit risk,operational risk,market risk and policy risk in the process of TK Group’s SCF risk managing.From the perspective of SFC management system,this paper analyzes the problems and causes of TK Group’s SCF risk management,both in terms of risk identification and risk evaluation,and concludes that credit risk and operational risk have a more prominent impact.In order to optimize management on TK Group’s credit and operational risk,this paper proposes optimization initiatives,focusing on: in terms of credit risk control,strengthen credit supervision and management,enhance risk warning system and improve credit database;in terms of operational risk control,introduce and cultivate talents,optimize information sharing system,improve business processes and enhance the efficiency of capital operation,while other corresponding recommendations are also made for other secondary risks.