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

Abstract

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.