Research On Risk Management Of Guarantee Business Of S Financing Guarantee Company

Since the reform and opening up,small and medium-sized enterprises have gradually grown into a new force for national economic and social development,which is an important basis for building a modernized economic system and promoting high-quality economic development.For smes,financing is difficult and expensive,which has always been one of the main problems restricting their development.In particular,the impact of the epidemic on the market has caused many smes to break their capital chains and even appear a "wave of bankruptcy".Financing guarantee companies,which are specialized in supporting the development of small and medium-sized enterprises and providing financing services for them,have gradually grown into an important part of China’s financial market.In recent years,with the downturn of the overall economy,financing guarantee companies face an increasingly severe living environment;The mismatch between risk and return of financing guarantee companies determines that guarantee institutions themselves are faced with greater systemic risk,and the risk management of financing guarantee companies has become an important issue related to their survival and development.In this paper,S Company,a large government financing guarantee institution located in Ningxia Region,is taken as the research object,and S financing guarantee Company is studied by using the ERM framework,which is well-known in the risk management world.Firstly,the risk management system of S company is analyzed according to the process of target setting,event identification,risk assessment and risk control by combining the eight elements of the positive dimension of risk management in the framework.At the same time,combined with the new version of ERM framework for the integration of strategic and performance factors,found the problems of S company’s risk management system,that is,the risk assessment indicators are not reasonable enough,evaluation results are not accurate;The corporate governance structure is not sound,the internal division of labor is not clear;There are loopholes in the business decision-making process,and the internal review is not standardized;Excessive concentration of industry,single customer and credit granting bank;Business development deviates from the industry target positioning,excessive pursuit of profit and scale expansion.In view of the above problems,the corresponding solutions are put forward,that is,to perfect the industry database resources,optimize the risk assessment index;Establishing a modern corporate governance system and clarifying the internal division of responsibilities;Improve the business decision-making process,improve the business review mechanism;Optimize business structure,reduce single customer,credit granting bank and industry concentration;Return to the industry development orientation,set up a reasonable performance assessment target five points.Throughout the study,literature research method,interview method,case analysis method as the main research methods.In this paper,ERM framework of total risk management is used as a theoretical tool to show the current situation of S Company’s risk management system,sort out the existing problems of S Company’s risk management,put forward relevant measures to optimize S company’s risk management,and provide theoretical suggestions for S company’s operation.At the same time,it has practical reference significance for the guarantee institutions with similar background with S Company in the province and even in the western region.