Study On Risk Management Of Xinxin Small-loan Company

With China’s rapid economic development and reform of the financial system,private capital to fully release the vitality of, also ushered in a new era in thedevelopment of a small-loan company, from pro-poor policies under the guidance ofdisbursement of funds to become real commercial significance in financial institutions.Popularized of a small-loan company, not only policy-oriented financial institutionson poverty reduction in the past many abuses and effectively guiding private capital toenter the micro-financial market, regulate the private credit market, play a capital roleto promote rural economy and development of small and medium enterprises. Micro,small and medium business environment in China, especially the construction ofcredit environment, chronic lack of domestic research on micro-credit riskmanagement techniques and practices, led to burgeoning micro-finance companiesneeded serious lack of talent. Under the combined effect of these factors, the domesticpart of the existing operation of a small-loan company is not ideal, some haveemerged a bigger credit risk exposure, while others appeared more serious compliancerisk.Firstly, to define the related concepts and theories on risk and risk management,as well as domestic and international risk management presenting situation andtendency of a micro-finance company. Then, based on the basic situation of Xinxinsmall-loan company, including company profile, and organization structure, andcompany operating range and business carried out situation for field investigation, wefocus analysis Xinxin small-loan company currently faced of main risk. In clear riskmanagement objectives of the company on the basis of risk control and policyrecommendations for the sustainable development of a small-loan company tooptimize risk management process, strengthen the internal risk management andstrengthening credit management of three major areas of improvement plan.Concludes with the friends of the Xinxin small-loan company risk managementimplementation procedures, as well as the external environment to support and fostera culture of risk management the two safeguards to protect risk management to raisethe standards of a small-loan company.Migration of the risk culture and excellent risk management system in a largenumber of small loan companies to promote the science of risk management, prevention and control significant risk exposure, better serve small-loan companies inmitigating and micro, small and medium enterprise financing difficulty guidingprivate lending their rightful role in the Sun.