A Research On The Risk Management Of The Loan In Universities And Colleges In China

Since a new policy has been taken to enlarge the extent of high level education ,through which the high level education of the state has been changed from "elite pattern" to "popular pattern" in 1999, it has been 10 years. In the past years, the high education has developed rapidly. Meanwhile, it enforced from under the plan economy to under market economy. The simultaneous improvements in both education resources and scales have a positive influence on Chinese high education.Marketization and popularization of higher education bring opportunities as well as risks to colleges. Higher education budget is mainly funded from the state revenue. As the education expenditure accounted for the proportion of GDP is very low, and increasing budget is far from the pace of expansion, so, it is imperative to seek for new sources of education appropriations. It is proved that development through raising a loan adopted by universities and colleges through financial markets effective. The development through raising a loan breaks through the principle presented by both domestic and foreign economists' circle and educational circle that school as the public utility can not run with deficit. However, the loan has the cost, universities and colleges are required the repayment of capital and interest, or else, they may face the problems with increased levels of unsustainable debt, financial crisis and impediment to their growth. At present, most universities' loan has been far beyond its affordable and greatly improved the funding risks of the universities and colleges. Because the importance of universities and colleges in national economy and our daily life, timely recognize risk and control could affected to healthy development of universities and realization of the objective of higher education in China, to enhancing innovation and the overall strength of country. Therefore, universities and colleges should be established effective risk managements system to provide guarantee for the realization of their strategic objectives.The thesis uses for reference Enterprise Risk Management-Integrated Framework of COSO. With the macro-background of the universities and colleges' development at present, the thesis investigates the historical causes and practical basis of their indebt, analyzing the macro and micro factors influencing the debt crisis, then, concludes the risks of debts in universities and colleges now. On basis of it, a basic risk management framework about the loans of universities is built. The basic framework is composed of 8 factors as follows: good internal control environment, appropriate and reasonable goals, overall and correct identity, sustaining risk assessment, proper risk coping style, persistent and integrity control activities, harmony and smooth information and communication, sustaining and effective monitoring. Combined with the actual situation of the loans of the universities and colleges in our country, the methods of qualitative analysis with quantitative analysis are used. And, how to manage the risk of loan is stated from every factor.The innovation of this thesis is that it applies the theory about enterprise risk management to the colleges, and modifies accordant with the particularity and complexity of universities and colleges' organization, then initially establishes the fundamental framework of the risk management on loan with reference to the loans of universities and colleges.