Study On Risk Management Of Trade Finance Business Of Commercial Banks

The rapid development of network technology and transportation has broken the time and space barriers of communication in the past,and trade between countries in the world has become more convenient,which undoubtedly has created good economic development opportunities for both sides of the transaction to a large extent,and the financial industry has also enjoyed this dividend,and the banking industry has gradually developed financial services products based on trade transactions for business cooperation,but because To avoid risks and minimize the economic losses caused to banks,it is necessary to solve the problem from the root and establish a complete risk prevention and control mechanism from within banks to ensure that banks can successfully play the role of intermediaries in international and domestic trade financing between enterprises and seek a sound This paper selects Bank S of Zhengzhou as an example.This paper selects Zhengzhou S Bank as the research object and analyzes the development of the bank’s trade finance-related business in detail.The following problems are found in the bank’s trade finance business through the acquisition of data by means of questionnaires and processing:weak risk awareness among employees,imperfect organizational structure,inadequate business approval system,weak risk management system,and lagging development of risk early warning system.Subsequently,based on the relevant theoretical basis,relevant optimization measures and safeguards were proposed in conjunction with the actual situation of the company.The optimization measures mainly include:strengthening the professional ability and risk awareness of staff,improving the organizational structure,refining the approval system of trade finance business,optimizing the risk management system,and improving the early warning mechanism.In addition,to ensure the smooth implementation of the optimization measures,a series of safeguards have been formulated at the institutional and management levels to help clear the obstacles in the implementation of the optimization measures and achieve twice the result with half the effort.This paper takes Zhengzhou S Bank as a real case study,analyzes the bank’s trade finance business in depth,enriches the research results in the financial industry,and proposes solutions to the problems of Zhengzhou S Bank,which will not only contribute to the long-term development of Zhengzhou S Bank,but also serve as a reference for other banks in the financial industry to prevent risks in their related business.