Study On Secured Transaction Risk Management Of Shenzhen DB Corporation

In the process of economic construction and development, Small and Medium-size Enterprises (SMEs) play a critically important role in supporting the national economy. Due to the importance of SMEs, the financing difficulties they are facing should be admitted and overcame of no delay. To solve this problem, establishing SMEs credit guarantee system and large professional SMEs Credit Guarantee Organizations (CGOs) with strong anti-risk capability is an effective measure, proved by preliminary practice.However, low-level risk management of existing CGOs and lack of excellent domestic CGOs make the research valuable in terms of how to improve CGOs'risk management, to keep their sustainable development, and to give full play to CGOs'support for SMEs.Shenzhen DB Company, the object of this study, is a professional SMEs financing guarantee organization with many deficiencies in risk management since its foundation, which cause frequent credit risk and high compensation ratio. DB's situation is common among domestic CGOs.This study analyzes current risk-control state of Shenzhen DB Company and indicates its problems. Meanwhile, the solutions are provided to give reference to those similar CGOs, with the purpose of promoting the better development of more CGOs and offering help to solve SMEs' financing difficulty.