Research On Risk Warning And Control Mechanisms Of Financing Lease Enterprises

Financial leasing are modern financial instruments with dual properties of financing andleasing assets, Financial leasing which is formally leasing asset in form has financing distinctivefeatures in essence. The risk management of the financial leasing is throughout the managementprocess of leasing enterprise. The development of China’s financial leasing started late, and is stillin the early development of the fields.The relevant policies and regulations system are not quiteperfect, coupled with the inherent characteristics of finance leasing business easily bringingrisks.Therefore, financial leasing companies need to establish an effective risk measurement, earlywarning and control mechanisms to avoid financial risks arising under financial leasing, which canlead to the healthy development of financial leasing industry.This thesis used risk management of Chinese financial leasing enterprises for the study,discussed about the risk management, risk warning and control theory of current financial leasingenterprises, sorting the risk category of financial leasing enterprises, analyzed the causes offinancial leasing enterprises risks, built financial leasing enterprise risk model. By using actualcases to risk forewarning model and validate the effectiveness of risk pre-warning model, andproposed improvement of China’s financial leasing enterprise risk control mechanismcountermeasures and suggestions.This thesis comprehensively analyzed the risk arising from financial leasing mechanism. Firstof all, it summarized seven kinds of risk types of financial leasing enterprise, risks from lessors,risks by technical progress, risks from the changes in the external environment, risks from thechanges of market, etc. Second, analysis of the reasons for the formation of a financial leasingenterprise risk, that is the inherent characteristics of financial leasing is easily to form risks, as wellas China ’s external environment for financial leasing.This thesis built forewarning model of finance leasing companies, and research around theactual cases. Firstly, according to the analysis of formation mechanism of financial leasingcompanies, determine the scope of the risk warning in the five dimensions. Secondly, using expertevaluation method and fuzzy evaluation to indicate level one and level two of risk warning indexsystem, through statistical analysis of the relative importance of evaluation at all levels between thefactors. Then, establishing each level of risk assessment criteria and indicators of risk warning mechanism, to forming the risk forewarning model. At last, take S financial leasing company forexample, using risk pre-warning model to measure and pre-warn the risk of financial leasingcompanies, the model results are consistent with the actual situation of S financial leasing company.Combining the risk formation mechanism and risk forewarning analysis, this thesis proposedfive strategies in improving risk control mechanism for financial lease enterprise. Firstly, optimizethe control environment. To improve the corporate governance structure of the finance leasingcompany, and establish effective risk control system. Secondly, dynamic risk assessment. Toimprove risk assessment management and forewarning systems, and set up the whole process ofdynamic project risk forewarning, analysis, assessment and control mechanisms, including riskprevention before lease, risk tracking when leasing, and risk response after the lease and etc.Thirdly, strengthen the control activities. To take effective leasing project risk control strategies,mainly including risk aversion, risk decentralization, risk transfer, risk compensation, risk rejectionand, risk digestion. Fourthly, strengthen information exchange. To set up smooth communicationchannels and speed up the construction of information system. Fifthly, perfect the monitoringmechanism. To set up a reasonable internal audit, to ensure the independence of internal audit, thusto make full advantage of internal audit and improve the internal control assessment and evaluationsystem.