The Third-party Financial Leasing Company's Business Innovation And Risk Management Research

In the international financial market, finance lease is the largest capital provider in addition to bank credit. However, China's financial leasing industry remains in the early stages of business development after nearly thirty years (1981-present) of development. With the increasing demand for capital and technology in the economic development in recent years, financial leasing industry is developing vigorously and the number of third-party financial leasing agencies had experienced an explosive growth in 2013 (from the 2012's 560 to 1026). As one of the financial leasing services with the most distinctive industry characteristics, the third-party financial leasing companies, whose development has a significant impact on the whole financial leasing industry, can even be considered to determine the penetration of financial leasing industry in China.The third-party financial leasing companies are currently facing a lot of problems in terms of capital?market and professional level etc., and even lagging behind other types of financial leasing companies (banking system, vendors system). In order to obtain better development and promote business innovation actively, the third-party financial leasing companies need to seek ways of solving problems?look for partners and practice internal management on the basis of reality?innovation and long-term planning. As presented in the essay, the third-party finance leasing company's business innovation are achieved through funding channel expansion?customer base diversification?professional development and business process re-engineering. The funding channel innovation mainly refers to combining the third-party financial leasing industry with the capital market, because the capital market is the only one that is capable of providing stable and long-term funding for undertaking finance lease projects; customer base diversification mainly refers to changing the current profit pattern which only relies on spreads, and finding the right customer base to develop businesses which combine finance?trade and services; professional development and business process re-engineering are regarded as a part of the business innovation too, because not only external expansion but also internal support are required by the business innovation. All the business innovation as mentioned above would create whole new business models for dealing with competition and challenge in future.Within the participation of new partners?new officers?new property and business processes during the business innovation, the existence of innovation risks need to be fully recognized and controlled by the third-party financial leasing companies. As presented in the essay, in order to minimize the risks which arise from the business innovation, certain risk controls such as risk avoidance?risk transfer and risk prevention etc. should be implemented in each aspects of the innovation through combining with the development of practical wor?clearing the specific aspects of risk and analyzing the mechanism of risk formation in accordance with the theory of risk management.In order to achieve long-term development of the third-party financial leasing companies, the essay had made research into the combination between business innovation and risk management?analyzed concrete issues specifically from reality?regarded providing specific strategies for enterprise development as the core guiding ideology? made a reference to the theoretical knowledge of MBA and financial risk management.