Personal Automobile Consumption Credit Auto Finance Company Operating Risk Research

As auto industry is growing rapidly in our country, some auto-financing companies seized this chance and developed their business in China. In the past several years, these companies have achieved outstanding business results, but at the same time, they are facing challenges. One serious challenge is the operational risk management and control.At present the operational risk of auto finance companies do not have comprehensive and systematic understanding yet, which restricted the operational risk management practice. The operational risk becomes one big risk which the financial institution faces. The operational risk management is one of the most important contents in financial institution management, and is an important topic that the auto finance companies must face positively. This paper takes Shanghai Automotive Industry Corporation Finance company as an object of study, which is a typical representative of auto finance companies. To analyze the operational risk of SAIC Finance is helpful in understanding the practice of auto finance companies' operation risk.This paper introduces the concepts and theories related with auto financing and its operational risks management, analyzes the corresponding situation in China. This paper takes SAIC Finance company as an object of study, making suggestions based on the summing up of its success and deficiency through the investigation into its operational risks management and control practice. This paper mainly focused on some serious operational risks, such as risk control culture, human resource management and standard procedures of auto finance.Since involved in the auto finance industry, it is our responsibility to think over the operational risk in auto finance business, and research on the procedures against the operational risk. By study, research and analyze the operational risks both theoretically and practically, the auto finance industry may grow more prosperously.