Preliminary Study On Credit Risk Management Of Finance Companies

As one of the most serious risks faced by all financial institutions,credit risk runs through the whole process of operation and management,and its level is directly related to whether financial institutions can develop stably,sustainably and effectively At this stage,most of the management of credit risk of domestic financial companies is based on the more mature commercial bank credit risk management methods,which are appropriately simplified and optimized according to their own circumstances.A financial company that belongs to a group with the borrower has a natural advantage over the commercial bank in terms of the authenticity and timeliness of the financial data obtained.It can be used to analyze the status of credit risk more effectively through model analysis.Early warning,revealing and controlling.However,due to the small variety of business and the support of the borrowers,the financial company's credit risk management often floats on the surface and fails to play a role in risk control.Once the borrower has a mismanaged financial crisis,it will bring great credit risk to the finance company.Therefore,the exploration of financial company credit risk management has great theoretical guidance and practical significance for improving credit risk management,improving risk management effectiveness and enhancing core competitiveness.SD Finance Company,due to its short set-up time,limited company staff,weak management foundation,relatively aggressive management and rapid asset growth,has many common problems,such as weak risk awareness and imperfect risk management system.There is room for improvement.With the downturn in the domestic economic situation,SD Finance may face certain credit risks.In this paper,the representative member units are selected as the main objects of credit risk management.By comparing and analyzing the applicability of various models,the credit risk is tried to be measured based on the Z-score correction model and the Percentage model.The empirical analysis has carried out a preliminary study on the credit risk management of financial companies,and provided some reference for other financial companies.