Z Insurance Company "Belt And Road" Projects Risk Management Research

In 2013,President Xi proposed the “Belt and Road” Initiative which is the great blueprint offered by China based on the political and economic situation at domestic and aboard.“Belt and Road” related projects and exports face tremendous and complicated risks because “Belt and Road” Initiative covered a wide range of areas and involved a large number of countries.Credit risk is one of the major risks.Credit risk refers to the foreign exchange risk of Chinese exporters,projects contractor and investors led by the debtor unwilling or unable to pay the bills.Credit insurance is one of the main financial tools used to control and release the credit risk.Through purchasing credit insurance,the enterprises and financial institutions transfer the credit risk to insurer and realize the goal of protecting account receivables and optimizing the financial report.This arrangement helps Chinese enterprises to expand oversea market,protect against risks,facilitate financing and recovery from loss.The insurance company converge abundant credit risks of “Belt and Road” Initiative.The ability of risk management affects the smoothly proceed of “Belt and Road” work.This paper took the main credit insurance company Z as a case subject.Firstly,this paper demonstrated related theory,namely the Enterprise-wide risk management theory(ERM)and economic capital theory(EC).This paper pointed out that an insurance company must organize a enterprise-wide risk management system,at the same time,the EC requirement should be satisfied.Secondly,this paper illustred the status quo of “Belt and Road” related business in Z credit insurance company,which took a plenty of methods to manage risk.The risk level along “Belt and Road” company is also measured.Thirldly,this paper vividly demonstrated 4 cases,to induce the successful experience in underwriting high risk country,the failure in contractor case and 2 refusion cases.This paper found out the points below.In the positive side,Z company can consist on its risk control standarad,had a large number of specialties in risk management,implemented the risk control procedure prudently and transferred the risk through reinsurance and etc.In the negative side,the after system and predure after underwritten is not complete,the sensitive with risk signal is not advanced,the ability of dealing risk matters is not adeptted and etc.Finally,we found out that fulfilling the “Belt and Road” requirement,Z credit insurance company has to build more local institution aboard,play more attention to after underwriting risk management,put into more capital resource and improving risk analysis methods.