Research On The Risk Aversion Of Private Guarantee Corporation

Small enterprises and micro enterprises are making more and more contributions to Chinese economy.However, the financing difficulties of small and micro enterprises have not been solved, which restricts its further development.with the emergence of private security companies,financing difficulties have changed partly.Also played a positive role in promoting China's economic development.some risks exists in the guarantee industry and the financing guarantee companies,which caused the collapse of the Guarantee companies in Henan province and even the whole country in 2015.As a result,financing guarantee company has aroused people's concern once again.Firstly, this paper introduces the reason, developing course and the classification of Guarantee Corporation in our country.After that, the paper will has a detailed discussion about the risk characteristics of private Guarantee Corporation in China.In view of the current situation of the current bankruptcy of Guarantee Corporation,In order to seek the root of the problem,the paper will take the specific operation of Y investment Guarantee Corporation in Zhoukou as an example to analyze the problem.This paper briefly introduces the basic situation, the main business activities and profitability, guarantee business processes and risk control methods of Y investment Guarantee Corporation to elaborate its dilemma.Finally, the focus of the study is the reasons for operating predicament of Y Guarantee Corporation.In the process of looking for the dilemma,the approach of control variables is taken.The analysis is mainly focused on the specific operational process of Y Guarantee Corporation. The main contribution of this paper is to list some risks in the operation of Guarantee Corporation, and put forward some suggestions to reduce the risk.Hoping to provide some helps for financing Guarantee Corporation.