Research On Consumer Finance Trust Business Risk Management

The rapid economic development has increased the income of residents,improved their consumption ability and transformed their consumption structure.Not only has it promoted the development of China's real economy,the Internet and other industries,but it has also promoted the economic prosperity of China's financial industry.At the same time,consumer finance policy has also brought policy dividends.On October 11,2018,the State Council issued the "Implementation Plan for Perfecting and Promoting Consumption System and Mechanism(2018-2020)",in which corresponding policies were put forward for the economic development of the financial industry,and consumption policies were used to promote the development of the consumer financial industry.The plan also points out that the management mode of consumer credit should be innovated on the basis of maintaining the balance between financial risks and economic development,and the potential consumption points in the consumption field should be excavated to improve the level of consumer financial services.The policy has promoted the financial development of various financial companies,including banks,trust companies,auto finance companies and so on.Among them,trust companies started late and their main business is to provide financial support to relevant financial companies to ensure the stable development of the consumer finance industry.Among 68 trust companies in our country,most trust companies are vigorously developing consumer finance trust business.Consumer finance companies have solved the problem of capital demand brought about by the rapid development of business by issuing consumer finance trust products in cooperation with trust companies.With the rapid growth in the number of trust companies' consumer financial trust products,more and more attention has been paid to the risk and risk management of consumer financial trust business.Studying the risk factors and risk control measures in consumer financial trust business is of great practical significance to investors and trust companies of such trust products.Due to the uncontrollable nature of the consumer finance companies themselves in the development process and the limitations of the current laws and regulations in China on the supervision of related businesses,consumer finance trust and loan businesses are facing various risk management problems in the operation process.In order to solve this problem,this paper adopts the method of case analysis,selects Bohai Trust Vis Consumer Trust Loan Collective Funds Trust Plan as the research object,and summarizes the relevant risk management theories based on the collection,study and induction of domestic and foreign scholars' research results,literature and relevant theories in the field of consumer finance trust risk management.Based on the study of relevant risk management theories and this case,according to the general process of risk management,the main risk factors in this project,such as policy risk,market risk,credit risk and management risk,are classified and analyzed.If there is no reasonable mechanism and measures to avoid and control these potential risks,the trust loan business will be hindered and the overall development of China's consumer finance business will be affected.Firstly,the paper introduces the basic situation,operation process,specific scheme,transaction structure and risk control measures that have been taken of Bohai Trust Vis Consumer Trust Loan Collective Funds Trust Plan.Secondly,the potential risk factors of the trust plan in this case are studied,and the risk management measures of setting bad debt rate early warning are used to dynamically evaluate relevant risk factors,increase investment in financial science and technology,and use artificial intelligence system to play an irreplaceable role in the risk management of the trust plan before,during and after the loan.Through the above research and analysis,it is found that the core of consumer finance trust loan business is risk management,policy risk is a major uncertainty factor of consumer finance trust loan business,and market risk is the most important factor that affects the project yield.Finally,on the basis of case analysis,the paper puts forward reasonable suggestions on the possible ways to improve the risk management of consumer finance trust loan business,the focus of risk prevention and the countermeasures.