Risk Management Of Small And Micro Businesses’ Finacing-theory And Practice, Commercial Bank’s Perspective

As an important part of the national economy, small and micro enter-prises survival is directly related to the healthy development of the nationaleconomy and the stability of employment rate. However it is always difficultto solve the financing problem of small and micro enterprises, and it hasbeen the general concern of scholars from various countries. Small andmicro enter-prises in the life cycle of an average of less than three years,being high-risk groups of customers around the world in support of smalland micro enterprises have accumulated a wealth of experience, but also ageneral feeling: to support the development of small and micro enterprises isa world-wide problem. To control the risk of small and micro enterprisesfinancial services is the eternal problem faced by the commercial banks.For commercial banks, the development of small and micro finance isone of its restructuring and development of the strategic directions. If it caneffectively enhance its risk management, it will help achieve an effectivebalance of small and micro finance business costs, risk and return. And it willmobilize motivation of commercial bank, effectively alleviate the difficultiesin financing situation of small and micro enterprises and encourage them toplay an important role.The paper analyzes the challenges faced by small and micro financialrisk management; overview summarizes risk management of small and mircoenterprise financial services theory, and analyzes and evaluates its practicaleffect.Departure from the practice, the establishment of risk control system forsmall and micro enterprises financial services has been proposed. Thisproposal has a forward-looking, practical operability. For the steel trade and industry risk faced by small and micro enterprisesfinancial services in Shanghai, this paper has also investigated the causes ofthe risks and made some proposals to resolve the problems.By studying the small and micro financial risk control theory, this paperhas also focused on given recommendations to the development of scienceand technology small business credit risk, and evaluations related to specificproducts.Finally, by summing up and comparison, commentary has been made tothe need to optimize risk pricing models and cash flow management andcontrol aspects, meanwhile it indicates the direction of development of thesmall and micro finance risk management.