JX Automotive Group Financial Risk Management Of Financial Companies

As the enterprise grows and financial reform deepens, finance companies ---the financial institutions different from banks, come into beings. They are usually group-funded, relying on Group,and Serving for Group; meanwhile, they provide financial service platforms for enterprise group, also promote the its development. As non-bank financial institutions, financial companies provide financial services only for group within enterprise in a rather small scope of varieties; and they are faced with smaller risks than banks. It is inevitable for risks to exist in financial institutions, since operating currency means operating financial risks.The effective management of financial risk is the premise of financial institutions" survival.JX Autompbile Group Financial Company, as a non-bank financial institutions, has no exception.This paper analyzes the financial risks and causes of this car group. Based on theoretical knowledge about financial risk management, it addresses JX financial risks with both qualitative and quantitative methods. Firstly, it begins with the background and the significance, and analyzes the risk types, formation causes and the related risk management of the company. Secondly, accordingwith its actual situation, combined with Basel New Capital Agreement, the essay does the quantitative research and evaluations on the company's credit financial risks, market financial risks, and liquidity financial risks, and operation financial risks. Lastly, it focuses on the methods to establish and improve its risk management system after the quantatative analysis. The study on financial risk management of.JX finance companies will set an example for the financial risk management for other similar companies in China.