Research On Credit Risk Management Of RX Company’s Consumer Finance Business

In the past year,the COVID-19 pandemic has swept the world.The global economy has been experiencing the most critical challenge since World War II,and all industry chains around the world have been severely impacted.In order to cope with the challenges brought by pandemic,on the one hand,China is actively accelerating the transformation and upgrading of the industrial structure and driving the international circulation with the domestic circulation,thereby expanding domestic demand.On the other hand,the government has introduced various economic policies to encourage national consumption in order to stimulate economic growth and actively encourage the steady development of consumer finance across the country.It is well known that consumer finance plays a pivotal role in improving the life quality of consumers and stimulating economic growth.However,behind the rapid growth of the consumer finance industry,many risks and problems have also been highlighted.For example,the customer fraud,the malicious overdue of loans and the leakage of borrower information,etc.Therefore,preventing risks by improving risk control in appropriate way is of great significance to the healthy and sustainable development of the industry.This thesis takes the consumer finance business of the RX Company as the research object to make an analyze of its specific operation mode on controlling the credit risk of the consumer finance business.Firstly,an overview of China’s consumer finance development model and credit risk management research methods is made through the in-depth research of relevant literature.At the same time,the consumer finance business model and stock sector of RX company are described respectively.Moreover,this thesis also analyze the causes of credit risk arising from the consumer finance business of RX company.In addition,the Delphi method is used to identify the risk of Rx company’s consumer loan business,including 4 first-level credit risk factors(customer information,company management and control,cooperative institutions and products)and 27 second-level credit risk factors.Thirdly,a risk assessment model is established based on the results of risk factors determined by risk identification,the analytic hierarchy process and fuzzy comprehensive evaluation method are used to determine the evaluation results of first-level credit risk factors,and the evaluation results of second-level credit risk factors are determined with the aid of analytic hierarchy process and comprehensive evaluation methods.Ultimately,based on the assessment results,targeted risk prevention and control measures are proposed and a regular risk monitoring and early warning mechanism is formulated to reduce the overdue rate and bad debt rate of consumer finance business,minimize credit risk,and thus effectively improve the level of risk management.