Research On The Loan Risk Assessment System Of Automobile Financial Company

Automobile finance means financial services, which relates to theautomotive industry and involves in all aspects of automotive research anddesign, production, distribution, consumption. With the rapid development ofcar dealers in recent years, the auto finance companies pay more and moreattention to the risks control. As an enterprise, the ultimate goal is tomaximize its profits, but as a financial enterprise, risk control is also one ofthe important goals. How to effectively balance the risks and profits becomesthe main target of the auto finance company.Firstly, this paper describes the domestic situation about auto financecompanies, and analyzes industry’s opportunities and challenges with thetrend of interest rates deregulation.Secondly, it analyses the business of Y auto finance company and twotypes of risk, operating risk and credit risk. Concerning the operating risk, thepaper provides the measure on how to identify and control the risk bysubdivision of process and risk. Then through controlling the key processpoint, it optimizes the assessment and control system. Besides, concerningthe credit risk, it analyzes the inadequacies of existing risk control system, then establish a new risk assessment system through the analytic hierarchyprocess and Delphi method. Then, the paper compares the new riskassessment system with the old one. Through company’s business cases, andfinds out that the new system is more effective and scientific.Finally, the paper provides some suggestion about the risk control forthe company’s future development. Through the dynamic feedback andevaluation of the information, the company forms a credit risk assessmentsystem, and then it classifies customers and reduces credit risk.