Research On Risk Management System Of Trust Investment Companies Of China

Risk management always is a focus of financial industry. With the changing ofour financial circumstance, the risks of trust and investment companies facing aremore and more complicated. How to well manage and control the complicated risks isa critical problem that the domestic trust investment companies encounter during theperiod of further developing. While there still are some problems in the trustcompanies, such as system's imperfect, organization's unsound, and technique'sunsystemic, which not only will hold back the development of the trust investmentcompanies, but also make them mulfunction in risk avoidance.Thereby, it is significative and promising for the trust companies to make up thefitable risk management system according to the fact and mature technique of otherfinancial institution. This paper makes research on the risk management system, andmakes demonstration of the risk prospects.According to the characteristic of the trust and investment companies this paperanalysis the risk in the way of systematic method. Then, takes the facts of the trustcompanies into account, it establishes the three-dimensional risk management system,which bases on the following two aspects: one is theory of systematic engineering;theother is the practice of mature risk management system of commercial bank.Bases on the essential risks of trust investment companies: credit risk, operationrisk, market risk, and operating risk, it designs the ideal mode of the organization,system, technique and information requirement that are necessarily for the function oftrust companies. During the process, it emphasizes the rationality, harmonious, andvalidity of the whole system.This paper is of significative for the following reasons: On the one side, it canhelp the trust companies on the practice of risk management, on the other side, it isuseful for the institution of supervise and regulation. On the micro aspect, it willimprove the ability of risk management of trust companies, while on the macro aspect;it may supply a gap of theories' absence, so as to accelerate the development of thetrust industry both in theory and of practice.