The Small-Micro Financial Institutions Risk Management Research In China, Based On Behavioral Finance

After small micro financial enterprises in Bangladesh in twentieth Century seventy years, the financial model is extended to many developing countries, small and micro finance in Chinese also achieved rapid development, small loan companies, P2P net credit platform, small micro financial trading center, the folk capital registration service center and other small micro financial enterprises like bamboo shoots after a spring rain, have mounted financial stage. As "a form of shadow banking" small micro financial enterprises, make funds and liquidity in the credit market has greatly increased, thus the stability and liquidity of financial markets has played an important role, on the other hand, due to the small micro financial enterprises set up time is not long, the risk control system is not perfect for customers, the market less competitive and other reasons, the risk of the enterprise faced is increased, and produced a lot of complex derivative risk.In the country to encourage financial innovation and support small micro financial policy background of enterprise development, systematic analysis of risk of small micro financial enterprises, and in the light of these risks with new ideas and theory of risk control, to better ensure the small micro financial enterprises survival and development, but also the stability of the key role the whole financial market plays. Most of the current small wind financial control mechanism is the collateral on loans method developed by the. Behavioral finance as the frontier and trend of modern economic development, changed the traditional economics theory based on the hypothesis of "rational man" analysis paradigm, joined the other dynamic factors to analyze the economic problem, therefore, the author thinks that the Behavioral Finance on the current development of small micro financial enterprises, especially a lot of reference and application value at risk control. Behavioral finance, provides a new perspective for the current enterprise view of risk control, can make the enterprise more deeply understand the causes of risk, thus to guide how to solve these problems.This article from the perspective of behavioral finance to analyze the current wind control mechanism of the problems and shortcomings and put forward corresponding suggestions. The main research methods as literature study, individual interviews, case study.Previous studies focus category of behavior finance generally concentrated in the securities market, this paper carries on the analysis to the small micro financial institutions risk management system from the perspective of behavioral finance, reveal the heuristic, prone to small micro financial enterprises operating in the decision making process of overconfidence, easy availability bias, mental account, regret aversion, herd effect the depth of excavation phenomenon, its causes, and to KMHF company’s pawn business and micro credit business as an example, in view of the above problems and potential problems, proposed the improvement suggestions, such as establishing multi evaluation system, using the mathematical model of price analysis, business assessment into the value index, using time series, carry out personnel training, develop business norms and other measures.In summary, this paper mainly analysis in the small micro financial institutions from behavioral finance point, due to cognitive bias caused by the existence of the problem, and analyzed and then put forward some suggestions to solve the problem of. This paper provides a new perspective for the future research on small micro financial institutions Risk management, and provides a new idea for risk control of small micro financial institutions, so that the small micro financial institutions in the future can be healthy sustainable development.