Risks Arising in Leasing Operations and their Minimization Mechanisms

The purpose of this master’s thesis is a detailed analysis of each stage of the risk management procedure in a leasing deal in theory, as well as in practice. More precisely, there was developed a risk management methodology for a leasing company based on the example of operating lease for 20 Sukhoi Superjet 100 aircraft between VEB-Leasing and Aeroflot in 2017. This work has formulated 4 hypotheses dedicated to the decision on the deal financing itself, the acceptability of a this deal while controlling for a certain risk exposure, analysis of the efficiency loss of the capital used, and the determination of key factor for successful risk monitoring and control. It is worth noting that three of these four hypotheses were accepted. There was used a number of the following tools, according to the risk management process methodology: a risk map; a number of models that use discriminant analysis, the definition of creditworthiness category, the separation of customer risk into the risk of bankruptcy and the risk of receivables increase; the evaluation of the deal effectiveness was done via NPV, IRR and EVA; while as risk management metrics there were employed RARORAC, ROCE and RAROCE. It is important to emphasize that the scientific novelty of this master's thesis is based on the fact that companies frequently concentrate only selectively on certain parts of the four-step process of risk management. However, this work attempted to fully consider the entire risk management procedure step by step, develop a methodology for this process, and provide recommendations to minimize risks for the selected transaction.