Study On Building Financial Risk Evaluation System Of Trust Industry In China

Since the first trust company was established in China during1979,trust industry has undergone a tortuous development and continuouslyexploring. With the gradual normalization of national regulations，companies efforts such as business transformation， structuraladjustments， innovative products or services，trust industry expendingfast. The trust assets under management of2012has approach to7.5trillion，surpassing insurance industry to become the second largestfinancial industry.However, under the circumstance of modern market economy, riskexists at any time,every enterprise is facing a rapidly changingenvironment, the faster the development, the less likely you can ignorerisk. The core content of modern financial developing theory research isfinancial risk management. In the face of increasing market competition,establish an effective risk prevention and control system is not only theenvironment requirements, also is the inherent requirement of enterprisefor future.The article aims to find suitable index to build evaluation systemfrom the perspective of financial risk, make reasonable judgment of trustcompany financial risk situation, expecting to do some help for our trustcompanies financial evaluation system’ establish and development.This paper is devided into a total of six parts. First, mainly elaboratedresearch background and significance and sum up domestic andinternational relevant research results; The second part discusses relevant financial risk theory, analysis the present financial risk situation of trustindustry; The third part tells the trust financial risk evaluation’ buildingprocess. The fourth part decide the weights of evaluation indexes and setstandards by analytic hierarchy process (AHP) and the efficacycoefficient method; The fifth part randomly selected two trust companies,measure its financial risk score verify the system’s rationality; Finally tosum up, views, putting forward the prospects for further study.Through the construction of financial risk evaluation system,strengthen the comprehensive risk management of companies, can helpminimize the risk as far as possible, promote the healthy development.