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CRO RISK FORUM: When back to basics is not enough
18 August 2009
Risk has moved up the leasing industry’s business agenda, says Frances Watson, chief risk officer at Siemens Financial Services UK
Most industries are facing their own challenges during these difficult economic times. The leasing industry, after several years of growth, is having to adapt its strategy. As different risk strategies emerge and become adopted, prices are being driven higher and leasing companies are having to refine and revise their approach to target market sectors with varying degrees of commitment.Some lease finance providers with distribution channels closely connected to a specific industry sector, historically envied for their asset expertise, are being particularly stretched as customers’ investment in equipment has slowed and risk positions on future values have shifted from projected profits to losses. Cash constraints exerted on some leasing companies, together with price rises reflecting escalating credit hits, are adding to increased competition for good credit risk obligors.As a result, an effective sales and risk strategy comes alive in a recession. It starts with a meaningful debate on topics such as...
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