The Compensation Mechanism Of Enterprise Annuity Management Risk

As an essential part of social security system, Enterprise annuity does not only activates financial market, but also enhances society security system and stabilizes our country. Enterprise annuity management is a very complicated process with so many participants. In this process, it will occur Credit Risks, Investment Risks and Operating Risks and so on. All these risks threaten annuity seriously, degrade the pension of beneficiary and also influence employee and employer's activity.In all of world, building a compensation mechanism of management risk is an effective mechanism of afterwards assistant to protecting beneficiary when project go bankrupt or fund has run off. It is confirm to market rules and requirements for safety. In our country, annuity is a new and developing area, citizen don't realize it clearly. This mechanism could remedy the disadvantages of our capital market and manage organization. It's an essential factor that can promote our enterprise annuity system. Meanwhile, our government requires invest organization should maintain investment risk deposit. It's the embryonic form of compensation mechanism of risks.Many countries had built this kind mechanism according to the characteristic of their own enterprises and annuity project, such as PBGC. Our government should build a different form according to our market situation. How to build it? What kind mechanism is it? These should be decided according to the development level of financial market, future direct of annuity and the government's power and responsibility.My paper will discuss the importance and feasibility of the compensation mechanism of management risk. Then propose my personal suggestion.