A Study On Risk Control Of Financial Leasing Project

As an innovative financial services business, financial leasing has been on a rapid rise around the word. China has gradually introduced the financial leasing since reforming and opening. According to the free trade agreement, China formally opened to the financial leasing market especially after year2000. Financial leasing is developed rapidly in all walks of life of our country according to its unique advantages and played an important role in the introduction of advanced technology and equipments. Financial leasing is an interpenetrative and combinative result of bank capita and commercial funds in the development of financial industry. It is also a new type of financial business to combine physical and bank credit in the modernized society. Because of its financial and industrial character, the risk of financial leasing exists all through the process of the projects.The development for the financial leasing industry was restricted because of the lack of risk management sense, the outdated risk management methods and business conditions limitation. Prediction and management of the risk of financial leasing is the key to guarantee a fast and sound development of financial leasing industry. There are several important things for most financial leasing companies to consider first, such as to understand thoroughly the feature of the business and the corresponding risks, establish the mechanisms of risk identification, risk control and management, improve the internal risk control system, strengthen process risk control, and enhance the validity of risk resolution methods.Firstly this paper researches the definition, types and function of financial leasing. Secondly, on the basis of risk management theories, the paper probes into the risk generation mechanism and risk types. Then the paper provides all-dimensional risk control strategies and methods. Then, take a domestic financial leasing company as example, this paper analyzes how the company identifies and control the risks during the whole process of the project to enhance its risk control ability. In conclusion, it suggests risk management policies for financial leasing company from macro and micro aspects.