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Research on the Financial Risks and Prevention and Control Mechanisms of Heilongjiang Province's Trade Supply Chain with Russia

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DOI: 10.23977/ieesasm.2019.537

Author(s)

Su Hexin

Corresponding Author

Su Hexin

ABSTRACT

through the study of supply chain, finance and financial risks, this article clarifies the five major risks arising from the supply chain finance of trade with Russia in Heilongjiang province, and proposes risk prevention and control mechanisms for these major risks. Through research, it is found that credit risk is mainly composed of three aspects; market risk mainly refers to the risk of loss in on-balance sheet and off-balance sheet positions caused by market price fluctuations; business operation risk mainly refers to the operational procedures which are complicated and prone to deviations; legal and regulatory risks are mainly due to imperfect legal provisions in Russian trade; logistics supervisors management risks mainly come from the imperfections of the supervisors' own review of collateral items. After studying the risks and their causes in trade with Russia, a prevention and control mechanism was proposed: improving the comprehensive access management of relevant credit-granting entities throughout the industry chain; improving the dynamic management of pledged assets, mainly focusing on the selection of pledged assets; optimizing the key points of the business process and standard operation links; improving relevant laws and regulations; strengthening logistics regulatory access management.

KEYWORDS

Heilongjiang Trade with Russia, Supply Chain Financial Risk, Prevention and Control Mechanism

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