The Research On The Risk Management Of G Company’s Auto-ABS

The auto finance industry is affected by the overall weakness performance of auto consumption,and the Auto-Loan scale is growing slowly.With the declining sales of auto market,the fierce competition among auto financing companies leads to the continuous reduction of Auto-Loan interest rate and taking aggressive adjustment on business strategy,which makes the uncertain risk factors of each auto financing company appear certain differentiation.In order to improve the risk management and control ability of auto financing companies in ABS(Asset-Backed Securitization)business,it is necessary to guide auto financing companies to actively explore their own risk management mode,so as to promote the healthy development of Auto-Loan ABS business.In this paper,based on the G auto finance company plays a role as the originator and the loan servicer in the Auto-Loan ABS business,the research focuses on the G auto finance company’s current operation risk management system,which bears the functions of supervision and service.While as the originator to issue the Auto-Loan ABS,the risk management system will take charge of monitoring the asset quality,the transaction structure,and the cash flow risk situation.After deeply revealing the risk management system’s operation in issuance of AutoLoan ABS products,it will be to point out the existing problems in this system’s operation.Meanwhile the risk manager system operates in the asset securitization service,it will be taking the relevant quantitative management and monitoring prevention methods to against the external credit risk,focusing on the core team,management and control system and business capabilities to deal with the internal governance risk.And then the research puts forward a development direction that can be further improved risk manager system in the asset securitization service.Lastly based on the risk management operation existing in the Auto-Loan ABS business of G company,this paper is discussing the relevant improvement measures to improve risk management.It is believed that the adoption of incomplete payment mechanism,the introduction of external rating agencies and the flexible use of asset pool scale conversion can effectively improve the risk situation of the Auto-Loan ABS product design and issue.At the same time,strengthening the unified planning of the risk system,establishing the risk early warning level system,and setting up a visual dynamic monitoring system can effectively improve the risk system of loan service managementThe purpose of this paper is to improve the risk management of G company in Auto-Loan ABS,and according to the existing risk situation to give some relevant feasible and effective suggestions.In the meantime,providing some improvement ideas for the risk management of Auto-Loan ABS business in the automotive financial industry.