Research On Risk Management Of Financial Lease

Financial lease has been spreading wider and wider since its birth because of superior advantage, and became the second important approach to get new equipments in some advanced countries. Financial lease in my country did not develop well with a series of problems. In order to accelerate the development of leasing industry, it is an important task to analyze and control all kinds of risk factors and supervise the organs including the financial leasing outfits and foreign leasing corporations. The author study risk management of financial lease with the following respects. Firstly, the author summarizes the conceptions and function of modern lease, ideas and development of risk management. Secondly, analyzes the risk factors that leasing companies face, including reasons, influence and managerial methods and measurement indexes . Then, based on minimizing risk cost and considering actual conditions, the author studies some approaches of risk control and management. For example, choosing the appropriate credit type and coin, applying the derivatives and forecasting the interest rate term structure so as to reduce the financial risk. Using fuzzy unified model to make decision, fuzzifying the default critical point of KMV model to predict the expected default probability and compare different companies, applying other means except price to diminish the influence of trade cost , and taking up law weapon to protect vital interest. Controlling the liquidity risk of financial institutions and broadening resource of capital by means of securitisation. Making use of effective insurance contract to transfer purity risk and loss financing. Finally, author presents future development of leasing industry.