Financial Risk Analysis Of Guarantee Company

In recent years, large numbers of small and medium-sized enterprises (SMEs) and the rapid development of a new force for promoting economic development, which has a large economic and social development of the strategic position of company, can not be replaced. As the volatility of the business, the instability of the credit structure and the weak position in the national economy, SMEs to obtain external funding is extremely difficult. In this context, the guarantee companies also come into being, and have become an important platform for SME financing, to a certain extent, ease the financing problem of SMEs. Guarantee companies are professional organizations, which operating risks and facing various risks. And the financial risk is one of the biggest risks, it relates to the guarantee company’s survival. Therefore, guarantee companies in order to achieve sustainable development, how to identify and control financial risk, to become the primary problem to be solved.This paper includes six parts.Part one proposes the research of Guarantee Company’s background and significance of financial risks, describes the current status of research at home and abroad. Part two starting from the guarantee industry, introduces the general situation of guarantee and the meaning of the characteristics of the guarantee industry, discusses the financial risks of the basic theory of guarantee company, and proposes a point of view about the guarantee company’s financial risk is caused by three risk factors including the customer risks, internal risks and business environment risk. The third part analyzes the financial risks caused by customer risks, and proposes the corresponding preventive measures including strengthening customer surveys and investigations, establishing financial risks transfer mechanisms and early-warning indicator system for financial risks. The fourth part comprehensively analyzes the financial risks caused by internal risks, In order to prevent internal risks and propose five measures:the establishment of financial capital supplement and safeguard mechanism, the establishment of financial risk diversification mechanism, the establishment of risk capital for the financial system, the establishment of strict internal control system of scientific and building financial risk early-warning indicator system. The fifth part analyzes the financial risks of Guarantee Company caused by business environment and the corresponding countermeasures, and proposes to strengthen the grasp of national macroeconomic policies and the recommendations of the national economic cycle forecasting. Through the analysis of guarantee company’s three financial risk factors in this paper, we can achieve timely identification, distribution, and defuse financial risks. Part VI taking guarantee company A as an example from customer risk and internal risk two aspects are analyzed. Firstly analyze the guarantee company A’s financial risks caused by the customer risks, and how the guarantee company A take preventive measures to effectively defuse risks. And then analyzes the internal risks of guarantee company A, including the analysis of the financial risks of guarantee company A from four financial warning indicator systems, which are the capital adequacy indicator system, the security index system of assets condition, evaluation of management level and sustainable development capacity. According to these financial risk factors and puts forward some improvement measures to avoid risk, achieve to combine theory and practice.The innovation of this paper is comprehensive analysis of Guarantee Company’s financial risks caused by the main three factors; especially constructs financial warning indicator systems of customer risks and internal risks. But this paper in reference to some of the points and may not be fully mature, there are many flaws and shortcomings. For example, the studying of the constructing financial warning indicator systems is not enough in-depth, financial models are not established. Dose not set the weight ratio of a variety of financial risk factors. Therefore, I seek to study in future work to improve this paper.