Reserch On Enterprise Risk Management Of Small & Medium-size Enterprises Credit Guarantee Company

In terms of current world economy development, the survival and development of small & medium-size enterprises (SMEs) are not only important constituents for each country's economy, but a big difficult problem for the whole world. For SMEs, the confliction between their important economic and social functions and their own congenital defects directly leads to low credit standing, disadvantaged position in market competition, difficult financing and guarantee, so that it has become a bottleneck factor which restrains healthy development of SMEs. As a special system arrangement, small & medium-size enterprises credit guarantee (SMECG) has become one of important measures assisting SMEs in each country.It is generally accepted that SMECG is a high-risk industry, and SMECGC's risk management capability becomes the most important capability for its survival and continuous development. Especially since 2007, SMEs'living environment has got sharply worsened because of global financial crisis resulted from U.S subprime lending crisis, and guarantee companies providing financing guarantee services for SMEs have difficult in preserving their own purity and integrity, so that their risk management tasks become more difficult with more meanings.Starting with summarization of risk management theory and on the basis of comparison analysis between traditional and modern risk management theory, this paper puts emphasis on the research in enterprise risk management (ERM) theory and basic framework, design of overall risk management framework system for small & medium-size credit guarantee company, exploration and research in the introduction of overall enterprise risk management theory to SMECGC risk management, and it has not only a certain theoretical value for enriching and enlarging application fields of risk management, but proactively practical meanings for promoting continuous development of SMECGC.This paper is divided into 9 chapters by main contents and 4 parts by structures: Part1 Introduction, mainly expounds the background and significance of this subject, summarizes and evaluates domestic and foreign credit guarantee theory documents, and describes the research contents, main ideas and research methods.Part 2 includes Chapter 2, Chapter 3 and Chapter4. Chapter 2, Risk Management Theory Foundation, mainly describes evolution of enterprise risk management theory, and puts emphasis on the introduction of basic framework of enterprise risk management (ERM). Chapter 3, Review and Evaluation for Current Situation of SEMCGC Risk Management Theory from the View of ERM, introduces guarantee risk management of developed countries like Japan, South Korea, USA, and German and so on and adopts questionnaire survey to deeply grope the current situation, issues and their causes of formation for our country's guarantee risk management. Chapter 4, SMECGC Risk Management Framework Establishment Based on ERM, mainly on the basis of referring to enterprise risk management theory framework and according to risk management practice of guarantee companies, creates an ERM system aiming at SMECGC and gives an presentation respectively from the aspects of strategy, process, supporting facilities etc, and makes analysis and demonstration for the applicability and necessity of the introduction of ERM theory into SMECGC risk management practice.As the key of this paper, Part 3 includes Chapter 5, Chapter 6, Chapter 7 and Chapter 8. Based on the ERM framework of small & medium-size enterprises credit guarantee company established in Chapter 4, this part puts emphasis on the detailed analysis and presentation for ERM framework of small & medium-size enterprise guarantee companies from four subjects like risk assessment, risk disposal, supporting facility establishment and guarantee mechanism establishment etc.The primary points of innovation lie in:Firstly, the ERM theory framework was introduced into the risk management area of SMECGC (Small or Medium Enterprise Credit Guarantee Company). In an attempt to review the risk management issue of China's credit guarantee enterprises from the view of the overall risk management, the most up-to-date Enterprise-wide Risk Management theory was innovatively introduced into the risk management practice of the small or medium enterprise credit guarantee companies in this article to provide a comparatively comprehensive solution to the risk management issue of SMECGC as the peripheral domain, fill the gap of the ERM study of SMECGC, and expand the practices and applications of the risk management theories in the credit guarantee domain.Secondly, an Enterprise-wide Risk Management (ERM) system framework for SMECGC was established. Based the summarization and sorting of the ERM theory framework in combination with the author's work experience for years in the credit guarantee industry, the SMECGC ERM system framework was designed and established in this article with in-depth study from such aspects of risk assessment, risk management, infrastructure and guarantee mechanism, which not only helped the guarantee organizations to interiorly change their ideas of risk management, to improve their risk management capacity, but also was good for the relevant authorities to further enhance the industry supervision and to promote the healthy development of the industry.Thirdly, the overall risk assessment criteria system of SMECGC and the guarantee project risk assessment criteria system were established. From the perspective of both the entire company and the guarantee project itself, the risk assessment criteria systems that were relatively comprehensive and integrated were established respectively, which was firstly launched in the practice of the guarantee company risk assessment. Such criteria systems would become a beneficial tool and guide to evaluate and measure the overall risk level of the small and medium enterprise guarantee companies in a comprehensive and objective manner.The defect of this paper was the lack of risk pricing and warning coverage in the study of guarantee business using ERM theory and the insufficient research on the strategic objective development and the corporate culture construction of the small and medium enterprise guarantee companies. Moreover, due to the limitation of the data resources, it was difficult to investigate the total amount of risk losses of the national small and medium enterprise guarantee companies as well as the composition and causes. The analyses on and results of the surveys of the sample from the members of Liaoning Provincial Credit Guarantee Association may be somewhat different from the actual conditions of China as a whole. Those defects will be overcome and improved by the author gradually in the future research.