Credit Risk Management Of FZ Guarantee Company’s Personal Auto Consumer Credit Business

With the improvement of the living standard and quality of Chinese residents,people’s demand for material life has been endowed with the significance of the new era.The most obvious performance is the development of the automobile industry,especially the increasing annual sales of automobiles in recent years.According to the data analysis of the National Bureau of Statistics,by 2022,the number of civil vehicles owned nationwide reached 302 million,up 20.64 million from last year.In recent years,it has developed rapidly in China and has great potential for future market development.The auto consumption loan needs guarantee,so it reflects the importance of guarantee company.FZ Guarantee Co.,Ltd.was established in 2001,mainly engaged in retail credit guarantee business,the company’s business strategy concept is: retail credit service provider.The company’s core competitiveness is: retail credit whole-process risk management.Main cooperative banks: ICBC,Bank of Communications,Shanghai Pudong Development Bank,Bank of Beijing,etc.Since 2016,the company has begun to operate personal car loan guarantee business,as a new business of the company,on the one hand,it brings great development prospects to the company,on the other hand,it also contains risks.In the process of development,FZ Company’s personal auto consumer loan guarantee business has seen an increase in overdue rate and bad debt rate,involving 18 litigation cases involving more than 1.67 million yuan in just five years.Therefore,I began to pay attention to the risk management issues of FZ Guarantee Company,and hoped that the research and suggestions of this article could help FZ Company improve its own risk management level and optimize the existing risk management measures.Taking FZ Guarantee Company as the reference enterprise for this analysis,this paper analyzes the cause of the problem,the problem and the decision on how to deal with the risk from the perspective of personal auto loan guarantee business credit risk management.First of all,in order to further understand the two important concepts of credit risk and personal auto consumption credit guarantee,systematic theoretical study should be carried out,so as to effectively understand the information asymmetry theory,credit scoring model,risk management process,loan and risk culture.On this basis,the subjective and objective reasons are further analyzed: the subjective reason is that the risk awareness is not high,the risk culture is not implemented enough,and the objective reason is the lack of technical support.Finally,targeted countermeasures and suggestions are given from both internal and external aspects: strictly control customer entry thresholds,attach importance to risk management culture,optimize risk management methods,and optimize risk management processes.In the research process,it mainly uses literature analysis,case study,qualitative analysis and comparative induction.At the same time,this paper also has some innovations.It selects a relatively new theme and takes the guarantee company as the object to consider the credit risk management of personal auto consumption credit guarantee.With the help of this study,we can provide more favorable reference factors for FZ Guarantee Company in the risk management of personal auto loan guarantee business,control the risk to the minimum while increasing profits,and also play a reference role for other guarantee companies in the industry.