A Case Study Of Risk Management Of Sany Construction Machinery Financial Leasing

In China,the financial leasing of construction machinery business started late.With the rapid development of construction machinery,financial leasing business are facing many risk management problems.The supervision mechanism is not perfect,the relevant laws and regulations are lacking and the risk has increased exponentially due to vicious competition in the industry.At present,China’s economic development has entered an important stage that the overall level of the economy has been greatly improved.Financial leasing as an important part of the financial tools of the national economy is facing unprecedented challenges and opportunities.‘Sany’ is the first brand of construction machinery industry in China,who won the global sales champion of excavators in 2020.Sany’s financial leasing business started late that only established its own financial leasing company in 2010,after more than 10 years of development,who has been successfully promoted in China and many countries around the world.This thesis takes the research on risk management of Sany construction machinery financial leasing business,introducing the basic concepts and characteristics of financial leasing,risk management theory,combining the financial leasing business model of China’s construction machinery industry and the types of financial leasing risks.Discuss the related theories of financial leasing risk management.Analyze the current situation and characteristics of Sany financial leasing risk management and discuss the existing problems and causes of financial leasing risk management.The internal and external causes of financial leasing business risks,combined with theoretical research,summarize the main risk factors such as market competition risk,customer credit risk,credit risk,legal risk,national policy risk,tax risk and so on.Through the analysis of Sany’s financial leasing risk management system,drawing on the management experience of international advanced enterprises and introducing the advanced financial leasing risk management concept of Caterpillar Company of the United States,combined with China’s own economic characteristics and the development strategy of Sany Group,that innovative Sany’s financial leasing risk management model: the risk sharing system,through cooperation with agents,manufacturers and financial leasing company to support each other,benefit sharing,risk sharing principles and establish close cooperative relations.Jointly formulate market competition strategies,respond to complex market environments and fierce market competition,introduce the principle of "zero tolerance" and obtain true and accurate customer credit materials and establish a scientific evaluation system.At the same time,the re-manufacturing process of second-hand equipment is established to complete the rapid processing of recycling equipment and generate new benefits,reducing losses caused by risks.According to the financial leasing business process,the whole process risk control is carried out before,during and after the event,a series of risk management countermeasures and optimization suggestions are proposed,and the Sany’s financial leasing risk management system is improved and solutions are proposed: establish a sound agent cooperation system,a perfect credit evaluation system and credit review system,improve the mid-lease overdue grading system and collection system,and the rapid second-hand equipment recycling and re-manufacturing process in the later stage of leasing.Through the scientific and perfect financial leasing risk management system,the risk management is more comprehensive and effective,and helps Sany’s financial leasing business achieve benign,stable and sustainable development.