Research On Risk Management Of Jilin Credit Guarantee Company

The credit guarantee industry originates from effectively solving the problem of financing difficulty in small and medium enterprises; as China has a poor credit environment and an imperfect guarantee compensation mechanism currently, the credit guarantee industry also faces huge business risk while selling credit and taking responsibility. The risk management level of the credit guarantee company radically determines its developing sustainability. Aiming at the risk management research under this background, this paper customizes a set of scientific and precise risk management system with combination of the practical situation of Jilin Credit Guarantee Company, thereby accelerating the sound development of Jilin guarantee mechanism even the guarantee industry.Chapter one mainly introduces the developing course of domestic and foreign guarantee industry. The foreign guarantee industry which has gone through hundreds of years originated in Switzerland, 1840 and expanded later; at present, each country establishes the small and medium enterprise credit guarantee system through combining its own situations, which can be mainly divided into three modes; and the government dominates in the small and medium credit guarantee system. Compared with western developed countries, Chinese credit guarantee industry has a short developing history; based on"Guidance on Establishing Small and Medium Enterprise Credit Guarantee System Pilot"issued in 1999, all parts of the country began to establish the system successively; after undergoing three stages of pilot exploration, policy boost, legal implementation, our credit guarantee industry is formed preliminarily. Jilin Credit Guarantee Company found in April 2005 has become a guarantee company with the most complete service breeds, maximum capital and most branches through five years'forward development.Chapter two expounds the risk concept and concludes that the risk has the characteristics of low controllability, recovery, duality and unbalance and can be divided into systematic and nonsystematic risks and apparent and implicit risks according to its characteristics. Through analysis, it is found that the guarantee industry has strong professionalism and high risk which comes from both guarantee objects and self-operation, external influence and other factors. Based on these theories, this paper analyzes the risk of Jilin Credit Guarantee Company internally and externally.Chapter three mainly introduces relevant theories of risk management, wherein the risk management comprises five specific links: risk identification, risk measurement, risk assessment, risk control and risk management effect assessment. It shall set up the correct management philosophy for risk management; there are mainly four methods for processing risk: risk aversion, risk differentiation, risk shift and risk retention; and it shall combines the specific service and risk property to select the method. Then, taking Jilin Credit Guarantee Company as the example, this paper introduces the service flow and the risk management structure of Jilin Credit Guarantee Company and analyzes the current problems.Chapter four as the central link of this paper has quantitative analysis on the guarantee company by theoretical basis of a multilevel fuzzy synthetic evaluation model of risk management so as to provide scientific theoretical basis for risk management. Then, it establishes a risk management framework in terms of service flow and internal control; finally it enriches the contents of the framework, namely introduction of specific implementation and operation.Chapter five shows the operating process of the guarantee service through the guarantee examples so that we can know the risk management theory in the practical guarantee service and summarizes the guarantee risk management methods of small and medium enterprises with industrial commonness in practice through combination of theory and practice.The author thinks that the small and medium enterprise credit guarantee industry has high risk; on one hand, the guarantee mechanism shall pay attention to risk control of main body, improve the service flow, strengthen internal management, broaden information resource, and replenish human resource; and on the other hand, it shall also design the risk management implementation plan comprehensively according to the risk situation of the guarantee object. Based on the cases in practice, the author suggests that we shall improve the risk management of the guarantee industry, draw lessons from international advanced experience, establish a risk compensation mechanism with the leading of the government, coordinate the relationship between the guarantee mechanism and the bank, improve the enterprise credit system, and standardize the credit environment through lawmaking.