Risk factors of warehouse receipt pledge : a research based on risk assessments for Chinese logistics enterprises / by Ren Xiaobin
This dissertation is concerned with risk analysis of Warehouse Receipt Pledge (WRP) business based on the application of risk theory as well as principle component analysis methodology. It is aimed at helping logistics providers engaged in WRP take appropriate measures to manage risks effectively during business process. Simultaneously, it explicitly clarifies the risks regarding the business flow of WRP and how it becomes bridge to integrate conventional logistics business with finance business. In order to enable logistics providers to adopt right ways to address identified categories of risk, it combines China Shipping Line (CSL) as a research case with risk theory and PCA methodology. Risks are examined through business disputes. There were 17 disputes taken place at CSL in recent years. Expert Evaluation Method is applied in the assessment of risk factors related to each dispute. Analysis using SPSS 18 is conducted so as to find out weight of influence caused by each risk factor. As a result, the aggregated loss of each risk delegated as consequence is acquired. Meanwhile, likelihood of each risk is calculated by the number of occurrence of each risk. Therefore, the value of each risk is achieved in term of R = P×C (Risk = Probability x Consequence) and the aggregated value for each category of risk is fulfilled accordingly. As per the numeric size of each category of risk, it summarized that the higher the R, the riskier. CSL should determine to take either preventive or precautious step towards different risks in order to mitigate them. In the final part of the dissertation, conclusions are drawn with regard to the contribution and deficiency and to the analysis of the risk of WRP from the standpoint of logistics providers rather than commercial banks. It is hoped that it will be helpful for logistics providers to control the fundamental risks regarding WRP within limited resources. It also points out that Cost Benefit Analysis should be carried out as future study on WRP.