Risk Management Studies On Chinese Credit Guarantee Companies For SMEs

It is a universal way in the world to build the system of corporate financing guaranty to help the small and medium sized firms to get credit. In our country this system has been being built since 1992, and during the past ten years this system has developed well. The credit guaranty company plays a very important role in the small and medium sized firms' financing. In this paper the author concentrates on the risk faced by the credit guaranty company and the device used by the guaranty company to manage these risks.In this research, the author introduces the risk management methods and the relative process of the guaranty company under the backgrounds of the system of credit guaranty in our country. The basic theory used in this paper is the theory of risk management, and the experience of risk management in insurance and banking is used in this paper. The author builds a framework of guaranty company risk management that covers the general performance of the guaranty company.The author claims that for the guaranty company the risk management is to guaranty company can achieve the aim of upgrading the credit of the small and medium sized firms and making better allocation of resource.