Process-Focused Risk Analysis and Management of Purchase-Order Financing Under Logistic Financing Innovation

Banks cooperate with logistic firms and develop purchase-order financing, which can solve financial difficulty of SMEs in supply chain effectively. Based on the analysis of control mode of purchase-order financing, a process-focused business risk analysis model is established. Model analysis shows: process risk of implementing purchase order is the most important factor impacting business security; environment risk, information system risk, default risk of downriver firm and custody risk of logistic firms can impact business by impacting the process of implementing purchase order; in order to make purchase-order financing security, lenders should analyze and manage these risks roundly.