Research On The Risk Management Of Government Guidance Fund

Government guidance fund as an important form of investment fund is to attract venture capital to invest enterprises, which is an effective policy instruments supporting the development of enterprises. Although the government guidance fund in China has good prospects, there also exists operational risk. Thus, it is necessary to conduct risk management for its entire operation process. Strengthen the ability of risk management can help to improve government guidance fund’s management and investment capacity, and improve investment efficiency. Also, it can attract social capital and guide the direction of venture capital and promote the development of high-tech industries. Therefore, this paper which researches on the risk management of government guidance fund has theoretical and practical significance.Based on the theory of asymmetric information, agency theory, the theory of corporate governance, risk management theory and other theories, this paper uses literature research method, systems analysis, theoretical research method, case study and other methods to study the risk faced by the entire operation process of government guidance fund. According to the process of the government guidance fund’s risk management, the process can be divided into the financing stage, investment decision-making stage, the stage of the management after investment decision, exiting stage. Though analyzing the risk faced by the entire operation process of government guidance fund, this paper puts forward the corresponding risk management methods. Finally, based on the case study of risk management for the Xiangyang municipal government guidance fund, this paper analyzes and values the risk of financing stage, investment decision-making stage, the stage of the management after investment decision, exiting stage and proposes realistic methods for the entire operation process’ risk management. The results of this paper contribute the theory of government guidance fund’s risk management but also have important practical significance to improve the awareness of risk management and improve the efficiency of risk management, and richer practical experience of risk management for our government guidance fund.