Financial companies (also known as financial companies) are an extremely important type of financial institutions in western countries. Its financing mainly depends on issuing commercial paper in the money market and issuing stocks and bonds in the capital market; They also borrowed money from banks, but the proportion was very small. The funds raised are used to provide loans to consumers and small businesses who buy durable consumer goods and repair houses. Financial companies are divided into three categories: sales finance companies, consumer finance companies and industrial and commercial finance companies. Some financial companies are established by parent companies to help promote their products. For example, Ford Motor Company established the Ford Motor Credit Company to provide consumer credit for consumers who buy Ford cars.
Design of Company-level Risk Identification System
Numerous internal and external factors drive the company's strategic implementation and goal realization. The ability to identify these factors determines the success or failure of the company's overall risk management. The first is to get company-level risk advice from external experts. A company can obtain company-level risk opinions from legal advisers, external auditors, various financial rating agencies and other professional institutions, and disclose them in the annual report after analysis. Disclosure items include: exchange rate risk, price risk and industry risk. At the same time, by participating in trade associations and communicating with well-known enterprises and consulting companies in the industry, more and more comprehensive information can be obtained, so as to identify the risks at the company level more comprehensively. The second is to obtain the risk opinions of internal managers at the company level. Managers at all levels should systematically analyze the internal and external environment of the company and identify possible risks. External environment analysis includes: macro environment, industry characteristics, competition situation, etc. At the same time, enterprises must also analyze their own resources and capabilities, including human resources, financial situation, intangible assets, core competitiveness and so on.
Design of risk identification system at business level of financial company;
In addition to identifying risks at the company level, companies should also identify risks at the business level. By taking necessary measures to deal with risks at the business level, it will help to maintain risks at the company level at a reasonable and acceptable level. Enterprises can also obtain risk information at the business level by listening to the opinions of external experts and internal experts. First, get information about the company's performance, customer satisfaction and market prospects from strategic investors, customers and other relevant stakeholders to identify potential risks. Second, get more detailed information about products, prices, sales channels and promotional activities from business managers to further refine the risk information.