Research On The Operational Risk Management Of Financial Leasing Companies

The Chinese financial leasing industry has experienced fast growth in the last decade.Many newly set-up financial leasing companies emerged in the market.The assets of each financial leasing company have been expanding fast.Some financial leasing companies are even exploring creative business products.Asset expansion,business creativity and diversity all increase the operational risks the financial leasing companies may face.Therefore,the financial leasing companies should apply more sound operational risk management to effectively control the operational risks.Based on my working experiences of several years on the operational risk management in financial leasing companies,I made the research in this thesis.First,this thesis starts with the research on the definition,characteristics and measurement methods of operational risk as well as theories in relation to operational risk management.Then this thesis introduces financial leasing companies in terms of industry development and internal and external environment,and makes analysis on how internal and external elements impact the operational risks of financial leasing companies.Then based on theories in relation to operational risk management,by analyzing the current operational risk management practices of overseas and Chinese financial leasing companies,this thesis points out the weaknesses in the operational risk management of Chinese financial leasing companies.Then this thesis studies a specific case by analyzing the operational risk incidents and their causes to illustrate the weaknesses of the company's operational risk management.In the end,this thesis put forward with suggestions on how to improve the operational risk management practices of Chinese financial leasing companies and the new ideas on how to improve the operational risk governance of Chinese financial leasing companies.Sound operational risk management will support the healthy and sustainable growth of financial leasing industry.However,the operational risk management practices of Chinese financial leasing companies are still in the early stage.Therefore,the analysis on the weaknesses on the operational risk management of Chinesefinancial leasing companies and giving pertinent improvement suggestions to promote the operational risk management practices of Chinese financial leasing companies and decrease the occurrence of operational risk incident as well as promote the healthy development of financial leasing industry is the study purpose of this thesis.