RISK MANAGEMENT OF THE LEASING COMPANY

MARCEL NOVOTNÝ

https://doi.org/10.53465/EDAMBA.2021.9788022549301.350-358

 

Abstract: The number of leasing clients in Slovakia is constantly growing and this sector is becoming an increasingly important part of the local economy. Leasing as such ensures its financial stability, and the leasing companies themselves have changed from medium-sized companies to strong institutional investors who accumulate temporary free funds and place them on the financial markets. The management of potential risks that could jeopardize economic performance and stability must therefore be an essential part of their internal processes and must be given adequate attention. Under the pressure of competition and with the aim of profit, leasing companies also involve modern optimization methods in decision-making, and these become an integral part of business analysis. This work focuses on the potential use of one of the most widely used computational techniques in examining the risk of payment failure of their clients. By discriminatory analysis, we will verify the solvency of clients on the examined sample and then predict the probability of their future nonpayment.

Keywords: credit scoring, discriminant analysis, leasing, risk management

JEL classification: G11, G32

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Online publication date: 12 May 2022

 

To cite this article (APA style):

Novotný, M. (2022). Risk Management of the Leasing Company. Proceedings from the EDAMBA 2021 conference, 350 – 358. https://doi.org/10.53465/EDAMBA.2021.9788022549301.350-358