Research On Risk Management Of Company X’s Y Project

In recent years,over the course of medical and health system reforming in China,a series of relevant policies have been issued including "Guidelines on Promoting Comprehensive Reform of Public Hospitals at the County Level"(issued by National Health Reform,[2014]No.12),"Guidelines on Promoting the Construction of a Hierarchical Diagnosis and Treatment System"(issued by Office of the State Council,[2015]No.70),and "Guidelines from the State Council on the Establishment of a Modern Hospital Management System"(issued by National Health Office,[2017]No.67);in addition,other medical reforming documents,such as the so-called zero-difference-in-pharmaceutical-price policy and the modern hospital management policy,have also been launched.As a consequence,the sources of profit for public hospitals are severely impacted;meanwhile,as nowadays public opinion believes that the medical treatment is not only expensive but also not easily accessible,most of the hospitals began to expand their "capacity",a key step of which is to purchase sufficient medical apparatuses,further increasing the financial pressure.In such a context,hospitals gradually become an important source of customers for those financial leasing companies.It has been reported that,based on the market capacity growth of the various major segments,the average annual growth rate of the financial rental capacity in the medical equipment sector from 2014 to 2020 was 32.45%;among the various hot sectors of financial leasing,the medical equipment financial leasing has risen rapidly,which ranked behind the fifth place in previous years and now has soared to the second place,only next to the champion-the aircraft leasing.Obviously,medical equipment financial leasing has become a rising star in the leasing market.Based on the relevant theory of financial leasing,this paper elaborates the main modes of medical equipment financial leasing and the project risk management process;meanwhile,a case study using the claim-settled Y Project from Company X and its collaborator Company L,which involves medical equipment financial leasing cases with a total of 67 hospitals.Specifically,the pre-loan project risk assessment was revisited,which was compared with the actual risk factors for Company X;on this basis,the operating model,the price difference in the leasing equipment,the capital liquidity,the financial leverage and other risks which were overlooked by Company X were summarized;at the same time,loopholes in their risk management system for their hospital financial leasing projects were also identified,which involve unfamiliar business areas and the lack of risk management professionals.Finally,in view of the above-mentioned issues,Company X is suggested to improve their risk management capability from the following aspects,including optimizing their risk management system,expanding new financial leasing businesses,seeking for the necessary exit channels,and strengthening the internal risk management policy and team.