Design of Inventory Pledge Financing Model Based on Internet of Things Technology and Operational Risk Management

In recent years, supply chain finance business has developed rapidly at home and abroad, but some problems, such as the information asymmetry between bank and enterprises, and a lagging financing mode resulting in increased operation and maintenance risks, simultaneously exist. From the perspective of model optimization, in this paper, we combine with the unique functions of Internet of Things technology and design a new inventory pledge financing model and therefore construct the extreme value theory Peak Over Threshold (POT) model, which can be used to measure the operational risk of the inventory pledge financing model. Empirical analysis shows that the external fraud of the supply chain financial inventory pledge financing model causes the greatest loss. The new inventory pledge financing model based on the Internet of Things technology effectively reduces the operational risk according to the comparison of ES value between the new model and the traditional model.

I. Introduction

Under the background that traditional financial institutions, such as commercial banks, are in urgent need of business transformation, and small and medium-sized enterprises (SMEs) have great financing difficulties. Henceforth, supply chain finance has emerged and gained global attention. The development space of global supply chain finance is huge, and the development of the supply chain financial business has achieved a significant breakthrough. However, in reality, because the supply chain has many participants and the structure and operation are complicated, other risk loopholes are gradually emerging. For example, in the warehouse receipt pledge financing model, the transaction of information between the banks is relatively confidential, and the sharing of information on the pledge business is limited, which leaves space for the operator. The financing demander can unite the third-party logistics enterprise to cheat and obtain financing from different financial institutions in the form of one-vote or even empty-sheet pledges. For example, the concentrated outbreak of the Shanghai Steel Trade incident has caused banks and other financial institutions to lose as much as 300 billion yuan. Therefore, how to make full use of supply chain finance to develop banking business and solve the financing problem of SMEs while simultaneously optimizing and perfecting the financing model to achieve effective management of risks has become an important topic for industry and academic studies.