Study On The Risk Management Of Vehicle Financial Leasing Company

In recent years,the vehicle market has expanded significantly,and consumers’ demands for automobile consumption are also gradually diversified.Nowadays financial leasing is becoming more and more popular.In this industry,a lot of financial leasing companies pay attention to the operation expanding but ignore risk management.What’s more the multiple service provider system brings more problems and magnify risks.The government is still refining the existing regulatory system,so it is not good enough to help companies prevent risks.Compared with traditional consumer credit,vehicle financial leasing has a lower threshold which helps it become more popular.What’s more,it is the bridge of vehicle manufacture companies and finance institutions and others,so it also helps the capital and resource to used effectively,like drivers,money and vehicles.But it develops very slowly and it is facing with a lot of obstacles compared to other developed countries like the USA.Therefore,considering with the macro and micro system construction,to analyze the enterprise internal risk management with X Company is the theme.This article adopts the method of literature research and case study.There are three reasons to pick X Company as the object.First of all,it is a model in this industry and it listed in 2019 which means the information of X company is available,accurate and convincing.Information is very necessary for research.Secondly,the scale of asset and operating income both ranks top,and it is approved by other companies.And the most important point is that the business scope of X Company covers all kinds of operations and vehicle types,which means that the research result would be more scalable,reproducible and industry universal.The research theories in this article are classic theories of the financial industry:information asymmetry theory and internal control theory.This article mainly analyzes the source of risk based on the theory of information asymmetry,and studies the construction of micro internal risk control based on the theory of internal control.The research logic of this article is to combine the above financial research theories and research methods to study risk and the construction of risk control system.First of all,this article briefly introduces the development of the vehicle finance leasing industry;it links the construction of macro-industry risk control with the construction of micro-enterprises’ internal risk control and then analyzes the relationship between the two systems of macro-industry and micro-enterprises which clarifies the necessity of research on the construction of internal risk control system.This is also one of the innovations and research values of this article: linking the construction of industry macro-systems and enterprise micro-systems,combining the complementary and mutually reinforcing characteristics of industry system construction and enterprise management construction,and analyzing corporate risks management system construction.Subsequently,the article applies X Company as a case.First,the article studies the risk sources with asymmetry theory and the business model.Than it studies the internal risk control system with internal control theory and industry risk control system.In terms of risk analysis,the article separates it into credit risk and liquidity risk.The source of credit risk is the multiple service provider model,unstable customers and the market fault tolerance.While the liquidity risk mainly comes from the supervision of vehicle residual value estimation deviation and difficulties of disposing non-performing asset.In the analysis of the construction of the internal risk management control system of the enterprise,corresponding to the risk analysis in the previous article,this article has established two internal control system frameworks of credit risk and liquidity risk for X company’s internal risk control system,and studied them.This paper uses the connection between the construction of macro-industry wind control system and the construction of micro-enterprise wind control system,combined with company X’s business model and financial data to analyze the problems of company X’s internal risk control system.Finally,according to the research,three conclusions are drawn: the problem of the construction of the internal risk control system of X company,the improvement suggestions for the construction of the micro internal risk control system of X company and other companies in the financial leasing industry,and the macroscopic wind control of the financial leasing industry.Suggestions for improvement of control system construction are under below:firstly regarding the construction of the internal risk control system of X Finance Leasing Company,the main reason is that its internal credit risk construction system does not integrate the service provider business model,and the control method lacks penetration;the internal construction system of liquidity risk lacks the management of post-loan assets,there is no ecological closed loop of liquidity risk control.Secondly,the improvement suggestions for the construction of the risk control system of X company and other financial leasing companies are under below.For credit risk management,X company should reduce the use of the SP model and increase the accountability system to ensure the stability of the business model.At the same time,it should be combined with the mobile platform or credit card centers which means it could cooperate to realize information sharing and reduce the risk of default;for liquidity risk management,X Company should increase the coverage ratio of non-performing assets,increase residual value insurance to reduce the loss of bad debts,and combine the advantages of new energy vehicles to do a good job of offline assets monitoring.Thirdly,the industry’s macro system and the enterprise’s micro system are complementary,and the macro system of the automobile financial leasing industry should standardize the management of vehicle assets.Learn from the real estate regulatory model,let the mortgage and communication process of vehicles be managed by national professional institutions;at the same time,to open up the payment system from the top level and realize the linkage of the payment of car financing lease rent with credit cards are the good methods to let a stricter legal system help companies to restrain lessees.