Research On Risk Management System Of Chinese Trust Industry

Trust is a property management system that based on trust. Modern trustoperations are extremely flexible, functioned as a combination management ofproperty、financing、and social welfare which plays an important role in the modernfinancial system. Benefiting from the six industry consolidation and renovation, thetrust industry developed and improved rapidly, which has become the second largestpillar of the whole financial market. At the end of2013, the assets managed by trustindustry has reached at11trillion Yuan. For the past five consecutive years, themanaged asset growth at a high speed around50%. However, in the meantime ofrapid development, some problems exposed, especially on the issue of risk control.The healthy and stable development of the trust industry has become an key factoraffecting the stability and security of the national financial and economic. As a result,research on risk management in the Trust industry becomes an urgency and realityissue.In recent years, benefiting from nature of the simultaneous across of moneycapital and industrial markets, Chinese trust industry has rapidly developed but it alsocaused the risk of accumulation. Although China has paid a lot attention to theconstruction of trust industry’s legal system，"One Act three rules" issued to build abasic framework of the legal system and more mature regulatory environment, theoverall risk management is still lagging behind the rapid development of the trustindustry mainly reflected in a series of problems such as the lack of supervision andindustry self-regulation. Reference the experience in the United States, Japan, Britainand other developed countries in the development of the trust industry that shows usthe successful risk management of trust industry shall be supervised by thecombination of the government regulation, community supervision, industryself-regulation and trust company internal control in order to avoid the abnormaldevelopment of the trust industry in the absence of regulatory and institutionalvulnerabilities. Firstly, this article analyses the risks of the existence of the trust industry thatmainly reflected in the three areas of industry systemic risk、product risk and internaloperational risk, also combined with recent outbreaks of risk event, analyzing the riskof the trust industry. It has been substantive significance for establishment of the riskmanagement to reveal the contributing factors of risk and risk point in risk events.Secondly, analyzes the status quo of China’s trust industry of risk management andloopholes in risk management system. Through the management experience of theUnited States, Britain and Japan to abstract an important reference for the constructionof China’s trust industry risk management system. Finally, build the risk managementsystem from the improvement of the legal system, the external market environment,the trust industry self-regulation, the internal control and the way of governmentregulation to ensure that the trust industry to develop in depth.