A Study On The Risk Management Of Chinese Trust Company

Risk management is an eternal theme in the management of trust company, it is also a core competitiveness of sustainable development of trust company. The historical experience of trust companies in China for more than 30 years is worthy to be attended. With the "new normal" situaion, trust companies’experience from the high speed scale to the present stage of the sharp decline in the growth in assets, which face many new problems in risk management from 2009 to 2013. Under the "new normal" situaion, the key point for trust companies is to improve risk control ability in the business structure adjustment. Therefore, risk management of trust companies becomes an important issue of concern.Based on the background of trust business development in China over 30 years, with business risk management as the main line, the trust theory and the results of the risk management theory domestic and abroad for reference, the paper analysis of the main risk to the trust company and the reasons of how the risk arises, expounds the main steps of risk management and the main method also. Through the analysis of present situation of X trust company’s operate and risk management, the paper induces the new risk categories of X trust company under the "new normal" situation, including credit risk of over concentration, market risk by the economic downturn, liquidity risk under "rigid to honour", reputation risk in the risk disposal project, management risk of human resource misallocation. Then, the paper suggests transforming the mode of business development, raising risk prevention capabilities, perfecting the corporate governance structure in order to achieve the purpose of providing risk prevention measures for X trust company. Due to the trust companies have much in common in business management and risk management, X trust company as an object of study on the current risk management has certain significance to the whole trust companies in China. The paper also puts forward that risk management of trust companies need strong policy guidance and support.