YD Financial Leasing Corp. Risk Management Study In Infrastructure Project

After World War II financial leasing originated in the United States, the appearancecombined the traditional leasing business with finance, by using the leasing object as acarrier, to achieve the purpose of financing transactions by way to transfer the ownership.Over time, with continuous development, the financial leasing has become the world’ssecond-large financing method after bank.Since1981, the financial leasing entered from overseas, after about30years ofdevelopment and experience time, in these ten years, the financial leasing business madea tremendous changes and development, including in the field of infrastructure, financialleasing became one of the most important choice for majority construction corporation inlong-term debt financing. But now the financial leasing research in risk management,especially in the industry and infrastructure corporation, road and bridge construction andits related enterprises is still very limited, so do some explore on finance leasing riskmanagement in the field of infrastructure related business both on the theory and practice,will have considerable significance.In this paper, through the view of financial leasing companies, against the currentoperating situation of construction enterprises in the field of infrastructure, and researchthe risks in operating financial leasing business with construction enterprises, and have adeeply thought on how to control the risks. Taking the guide of traditional riskmanagement theory, through analyzed large demand and Long-period characteristics offinancial leasing business in the field of the construction, and giving my views accordingto the risk characteristics in construction enterprises’ credit and leasing object, about itscurrent existence and related issues, and also analyzed the issues such as high debt ratioexist in construction industry combined with the feature of financial leasing businessgive the thought on risk management, combined with some financial leasing caseanalysis from the YD company in construction industry, discussed in detail the conceptof financial leasing business in construction industry about the risk management tools and risk prevention. Finally, through prevention tools and risk management concept tosummarize and proposed "Heaven, Earth and Man" risk control model, and how well topredict the project risk from the direction of external, internal, system solutions putforward some recommendations of them: First, establish the sense of risk, believe theevidence; secondly establish the framework of risk management system; establishinternal operation specifications; eventually be implemented in the direction ofimproving staffs’ experience and capabilities on risk management.