University Liabilities Dynamic Risk Management Study

Nowadays, our colleges and universities loan to banks generally, in order to resolve the contradiction between expanding college admission and lack of school funding. But too much university debt and repayment ability of small will cause colleges and universities liabilities risk. Liability risk management for colleges and universities should consider the whole process of debt and changes in risk, implement dynamic risk management.First, the paper introduce research background and situation of colleges and universities liabilities, on the concept of college debt and liabilities risk,and then introduce the definition of risk management, methods, processes, and dynamic risk management theory. After that, it dissert the contents of colleges and universities liabilities risk management.According to the risk matrix, four-dimensional matrix of risk management shall be built. After application of risk management at the University Debt, it identify risks importance from a dynamic point of view, assess the impact of potential risk.For the university's narrow financial risk from University Debt, it should establish risk monitoring index system of university, monitoring university financial data all the time. According to the gray system theory, the grey relational evaluation financial indicators is established. After the analysis, grey order is calculated, it can grasp the overall financial position of university trend, evaluation of colleges and universities liabilities risk. With the changes in financial data, there were many changes in colleges and universities liabilities risk. Evaluation of colleges and universities liabilities risk continuously and effectively by monitoring university financial data all the time, can implement the dynamic risk management.At last, there are some suggestions and methods to prevent and control the risk of colleges and universities liabilities. Colleges and universities could adopt multiple channels for fund raising to reduce the amount of loans, build up dynamic repayment mechanism based on government,bank and universities tripartite co-ordination.