Research On Business Risk Management Of N Auto Financing Leasing Company

With the rapid development of economy and the transportation system,new-type urbanization has promoted the formation of automobile socialization.Chinese consumer automobile market becomes the competition focus of global automobile makers.Accordingly,the development of the whole automobile market in recent years has been leading into a stable and reasonable stage.As market operators,automobile sales companies are faced with fierce competition,where the profit obtained by automobile manufacturers from simple automobile sale is becoming increasingly less.Meanwhile,consumers' demand for automobile consumption has been developed from simple car purchase to the whole auto industry service chain.As a result,automobile financial service has become a common demand of manufacturers,distributors and consumers.Due to its advantages in sales,trade,finance,legal relief and other aspects,automobile finance leasing business is under expansion and enjoys a large share in all kinds of automobile finance products.With the rapid development of the automotive industry and the continuous extension of the industrial chain,automobile manufacturers,car dealers and third party capital are willing to set up and carry out the auto finance leasing business.However,the overdue rate of the individual auto leasing companies is still at high level due to technical imperfections,institutional deficiencies and unscientific methods,thus leading to strengthened emphasis on risk management of auto finance leasing business.The level of risk management is not only related to the healthy and stable development of the automobile finance leasing industry,but also an important evaluation criterion for the competitiveness of individual automobile finance leasing companies.In the paper,the research status at home and abroad and the relevant theoretical basis are firstly summarized.The information asymmetry theory and game theory are then mainly introduced,which provide the basis of economy theory for the conclusion that credit risk and operation risk management plays the key role in automobile leasing business.For deeper explanation,N Auto Finance Leasing Company is chosen as the research object.Through the anatomy of the company's business structure,organizational structure,business processes and risk preferences,five major problems are found existing in the corporate risk management in practice.Detailed analysis is followed to unravel the external and internal causes.Moreover,through the discovery of problems,retrospection of reasons and application of theories,it is found that for better control and management of car leasing companies,together with safer finance leasing security,the management of credit risk from external market and operational risk from the internal plays a significant role.In order to improve the business risk management of N Auto Finance Leasing Company,it is suggested that the credit evaluation mechanism,creditor's rights guarantee mechanism,customer quality assessment and warning mechanism be established to better manage credit risk,and that the internal environment construction,scientific audit supervision mechanism,high-end information technology application,and talent team construction be strengthened to better manage operational risk.Finally,the full-process risk management system is put forward.Three sub processes,which are given clear division of with stage focus,and two guarantee system are proposed to be established in the original company to give full play to the information technology and corporate culture.Moreover,suggestions are put forward on the key points of the three sub processes,in the hope of improved risk management of N Auto Finance Leasing Company,and meanwhile achievement of healthy and sustainable development of the industry for peer managers.