Study On Credit Risk Management Of Jinshui Microfinance Company In Qingdao

Small loan has the characteristics of flexibility and rapidity,which can provide financial support for the vulnerable groups such as "agriculture,rural areas,farmers",small and micro enterprises and alleviate their financing difficulties,and has gradually become an important supplement to China's traditional financing.However,the development time of small loan companies in China is relatively short,and because of the business characteristics,the risk is higher than that of financial institutions such as Banks,leading to the risk management of most companies is not in place,and the risk problem is prominent.Jin Shui Company was established in 2014,regards support small and micro enterprises' development as a target,and started small loans of mutual loan,credit,and pledge enterprise loans.During the development of the company,some problems have been exposed in the risk management of small loan.The increase of credit risk leads to the increase of business risk.In order to realize the sustained and healthy operation of Jin Shui Microfinance Company,it is urgent to improve the company's credit risk managementIn this paper,regard Jin Shui Microfinance Company as the research object,and risk management as the research content.Firstly,by analyzing the company profile,the paper analyzes three types of credit risks that the company mainly faces: external environmental risks,credit risks of farmers and internal operational risks.And elaborated the company' credit risk management present situation.Then,through analysis,a series of problems are found in the company's risk management: imperfect risk management organization and function,lack of quantitative assessment in credit risk lending,insufficient credit risk post-lending tracking,and imperfect operational risk management system.The main causes of these problems include three aspects: weak awareness of risk management,lack of risk management culture,and lack of risk management personnel.Secondly,aiming at the problem of credit risk management of Jin Shui Microfinance Company,put forward the risk management countermeasures.For external environmental risks,external forces can be used to contact with local meteorological departments and jointly establish agricultural insurance compensation mechanism with government departments.For credit risk,on the one hand,risk assessment index system should be established,and on the other hand,post-loan tracking and inspection should be strengthened.For operational risks,operational risks are identified and classified,and risk prevention is carried out by implementing effective control and supervision,improving training and incentive mechanism.Finally,in order to ensure the smooth implementation of risk management countermeasures,this paper proposes measures to improve the organizational structure of risk management,establish the enterprise culture of risk management,strengthen the internal information management of the company and improve the quality and ability of employees from the perspectives of organizational security,cultural security,information security and personnel security.The research of this paper can solve the problems of credit risk management of Jin Shui Microfinance Company and propose solutions to these problems,improve the company's ability of credit risk management,and help reduce the company's losses.At the same time,this study can also provide reference for other small loan companies to improve their credit risk management ability.