Research Of The Guarantee Business Risk Control

Since there are many of the chaotic phenomena in the guarantee industry, such as the false registration, the appropriation of financing and the guaranties lacking etc. The confusion resulted the chronic potential risk of this industry would fully expose in2014. Nearly half of the financing guarantee corporations have been walking bankruptcy or had shutdowns over the nation. This year will be a shakeout to the guarantee industry, a domino effect most likely will be taking place in next one or two years, only few guarantee corporations which qualified a state owned background will win in this superior bad discard, some large private guarantee corporations in succession start introducing new investors from overseas, over2/3guarantee corporations have been completely removed from this industry, currently a lot of financial institutions only offers an olive branch to the state owned guarantee corporations and few large private guarantee companies. It is in this environment, the financing situation of the medium and small-sized enterprises get tough. Therefore to research a set of practical risk control system of financing guarantee corporations is particularly crucial.This paper analyzed the origin of the risk from the guarantee corporation, and separately discussed the authenticity of risk, the embezzlement of funds of risk, liquidity risk, industry risk, identification of anti-collateral risk, management and disposal. It introduced two risk assessment modes that have been widely used by international guarantee industry; they are the Z-score scoring model of Altman and the fuzzy analysis model. But the risk assessment modes are not widespread in nation at the moment, in order to prove these two risk assessment modes and the types of the risks by using the actual data and cases. The results show that the author expounds the traditional risk management method and these two risk assessment modes are suitable for use in the guarantee institutions of China.Author also mentioned about the guarantee institution must not deal with the risk only by the risk management, but they should develop and execute a set of practical risk control strategy that suits the guarantee corporations. The quantitative data of Yunnan Province guarantee corporation’s situation and the means of risk control of the outstanding guarantee institutions in nation are author’s main direction. And hopes research a general, practical and truly effective risk control system for the financing guarantee institution in the future.