A Study On YiXin Group's Risk Management Issues In Auto Financial Leasing

With the rapid development of social economy and the continuous optimization of transportation infrastructure,automobile consumption has almost become the rigid demand of residents in China.In recent years,the rapid expansion of China's automobile consumption market,the release of favorable policies for the automobile finance industry,the continuous improvement of consumers' purchasing concept and the massive influx of capital have made the automobile finance industry develop rapidly.Auto finance has become the common demand of auto manufacturers,auto dealers and consumers due to its characteristics of driving automobile sales and providing financing platforms.Among them,auto finance lease will gradually replace the traditional bank auto credit mode due to its unique advantages(low down payment amount,low threshold and simple loan procedures,etc.),and is widely concerned as the "blue ocean" in the auto finance field.Multi-party capital has poured into the auto finance lease industry,and major auto manufacturers and dealers have successively carried out finance lease business,making the auto industry continue to develop and the industrial chain continue to extend.But auto financing lease business belongs to the emerging industry in our country,the industry market mechanism is not yet mature,related law also needs to be perfect,combined with individual auto financing lease company in risk management lack of benchmarking enterprise can consult,lead to defaults and bankruptcies in the industry at the higher level,company risk management level cannot meet the needs of existing business development speed.Therefore,how to improve the risk management ability is an urgent problem to be solved by auto finance leasing companies.Research on auto financial leasing,the main research literature focused on the macro level the empirical aspects of financing lease and theoretical results,the special studies in the auto financing lease is less,not form a relatively independent theoretical system,and the specific case analysis and quantitative research is not much,auto financial leasing risk management research lack of certain practical significance.This paper takes the risk management of auto finance lease of Yixin Group Co.,LTD.(hereinafter referred to as "Yixin Group")as the research object to discuss.Within two years of its establishment,YiXin Group has obtained 40 billion yuan of supporting funds,including equity financing,with strong shareholder background,including ECar,Tencent,Baidu and JD.Now,as the largest trading platform in China's Internet auto retail market,Yixin Group is facing a slowdown in the development of its auto finance lease business due to some problems in risk management.This paper firstly combed the domestic and foreign research situation and related theoretical basis,take the case of YiXin Group research object,through understanding the basic situation of YiXin Group,operating conditions and development status of auto financing lease,learned YiXin Group auto financial leasing show three risk: credit risk,operational risk and liquidity risk.By referring to the risk management framework of auto finance lease,this paper analyzes the current situation of risk management of Auto finance lease in Yixin Group: two supporting platform systems and seven specific risk management measures.It is found that At present,Yixin Group is facing a market environment with slower sales growth and increasingly fierce competition in the auto industry.In order to ensure market share and expand enterprise scale,problems in credit risk,operational risk and liquidity risk management are ignored.Furthermore,based on the information asymmetry theory and the total risk management theory,combined with the 5 elements and 23 principles in the new COSO framework,this paper makes a deep analysis of the causes behind the existing problems in risk management of Yixin Group,and finds its deficiencies in the system,culture and methods.Finally,based on the existing problems and causes of risk management in Yixin Group,this paper puts forward Suggestions on risk management improvement in three aspects: improving the organizational structure of the company and optimizing the human resource system;Cultivate the risk management concept of all staff and strengthen the construction of risk culture;We will improve the fund management system and enrich risk management methods.Based on auto financial leasing risk management as the research target,in combination with the practical situation of Yixin Group,from auto financial leasing with the theory of the risk management framework and comprehensive risk management,using literature research,case study,theoretical analysis and comparative analysis to analysis of the risk management,the existing theory combined with the actual situation analysis,put forward the corresponding proposals to improve risk management,for the auto financial leasing risk management theory to provide specific case analysis.Finally,this paper hopes to provide practical guidance for the better development of auto financial leasing industry led by Yixin Group.