Research On Risk Management Of Ship Financial Leasing

With the rapid development of international trade, as well as shipping center and financial center goning forwards, ship financial leasing business in China will catch more and more attention. However, the current capacity of the enterprises'risk management is weak, and lack modern risk management system. Meanwhile, the study in ship financial leasing also remains stuck in legal contracts and qualitive analysis. Therefore, it is helpful to draw on the risk management methods from other academic field for further development of ship financial leasing business, which will significantly promote the overall development of the industry.In this paper, ship financial leasing, in particular the current development of financial leasing, were introduced. Secondly, this paper reviewed the risk management theory and put much focus on introducing the modern risk management theory. On this basis, from ship financing leasing company's point of view, a comprehensive risk management system (ERM) of ship financial leasing was established and a method for application of ERM system in intial period was proposed. Based on the characteristics of ship financial leasing, according to which the method made some adjustment upon the existing theory of the modern risk management, proposed a specific risk assessment model, including VaR with GARCH (1,1) model of interest rates, exchange rate risk assessment methods, VaR with multiple linear regression for specific information risk measurement. Finally, sensitivity analysis and financial models were used for the assessment of compiled overall-risk, and case analysis and calculation were carried out under the whole risk assessment system, in order to offer the financial leasing companies a method to perform the risk management.