Research On The Risk Management Of ABC Guarantee Corporation's Guarantee Object

As of the end of 2014,the number of medium small and micro-sized enterprises(MSMEs)accounted for more than 99%of the total number of enterprises in China.The MSMEs,which play an important role in many aspects including increasing the fiscal revenue and expanding employment,made a contribution to 65%of the country's GDP,50%of the country's tax revenue and provided 68%of the country's exportation,75%of the country's jobs.However,the core factor of restricting their sustainable development is the financing difficulty.In order to solve the problem of financing difficulty,the government encourages setting up financing guarantee institutions(FGIs),providing credit service for MSMEs.In 2014,the guarantee amount in all 8185 FGIs increased by 2.39 trillion,which amounted to 2.57 trillion by the end of 2014.FGIs play an important part in solving the difficulties and high cost of financing for MSMEs.While the FGIs' compensatory rate and the MSMEs' default rate were becoming higher and higher in the last three years.The situation sets higher demands to the risk management of FGIs.FGIs find it necessary to scientifically and efficiently identify and analyze potential risks which the guarantee objects may occur,draft perfect countermeasures to avoid risks,and defuse the risks that are already present timely and efficiently when the main risk factors and their causes are confirmed.Based on this,empirical analysis method,combination of case study and comparative research,combination of qualitative research and quantitative research,combination of theoretical and practical research,are used in this paper.This paper ascertains the main factors that the guarantee objects generate by analytic hierarchy process,using the representative FGI,the ABC Guarantee Company's risk management,as the core.Combining the writer's actual work,this paper puts forward measures to avoid and defuse risks.The main standpoints in this paper are embodied in the following aspects.Firstly,guarantee objects' risk identification mainly refers to the actual controller's character and moral risk,market operation risk,financial risk,related party guaranty risk and abnormal movement of counter guarantee.Secondly,the risk analysis problems of guarantee objects include backward technology,failure to implement risk management system,lack of library of customer resource and counter guarantee management and analysis system.Thirdly,measures to avoid risks of guarantee object include setting up responsibility-clear and scientific and efficient risk management system,establishing risk information system,carrying out risk management system roundly,setting up customer relationship of guarantee objects library,building the system of counter guarantee management and analysis,strengthening the effort to develop diversified and low-risk innovative products.Fourthly,for the measures to avoid risks of guarantee object,such measures as the scheme of defusing risks,one customer one policy,and innovative financial instruments of mergers and acquisitions.Fifthly,in terms of safeguards in perfecting risk management system,the paper proposes the use of IT,big data,interconnecting and interworking real-time online monitoring technology to forecast and analyze the risk,implement process controls and strengthen the rating analysis.By this way,the technical level of risk management can be enhanced and the achievement of the goal of risk management can be guaranteed.The innovation points of this paper lie in the proposal of risk-rating model based on a few indexes,two dimensions,five evaluation criterion and three decision outcomes in order to increase the scientificity and accuracy of the guarantee objects' risk-rating model.As a result,the improvements of risk management drives the development that the operating efficiency and business model realize transformation and upgrading,as well as,innovation and change,and then promote the company's core competitiveness,achieve leap development.Because of the writer's limited capacity,this paper only studies risk management combining ABC Guarantee Company's guarantee objects,excluding the strategic risk and national political risk of the guarantee institution itself.Besides,the risk-rating model of guarantee objects only involves the manufacture industry and more industries' risk-rating models need to be projected and improved,which will be the ongoing task in the future work and study.As the economy is complicated and the financial market is changing,the guarantee objects'risk management of FGIs won't apply the same rule all the time.The one who can keep pace with the times and case by case will be able to cope with changes.