Sme Credit Guarantee Companies Risk Spreading Mechanism

Credit and guarantee industry is a high risk industry with strong specialty, it will magnify risk while the credit and guarantee company magnifies its capital. Due to the small size, shortage of gage, and lower credit rank of small medium enterprises, it will bring higher risk to credit and guarantee company when providing guarantee for small medium enterprises. Under the conditions of market economy, the highly risky operation of credit and guarantee company inevitably limit the function of helping financing of small medium enterprises. Under this, the ability of risk management of credit and guarantee company will represents the core ability of competitionThis paper analyzes risk diversification scheme of credit and guarantee company, point out that we first should identify risk if we want to diversify risk effectively. This paper categories risk based on different risky main body as follows: the risk from guaranteed enterprise; the risk from credit and guarantee company itself; the risk from financial institution; and the risk from government and supervising department, etc. After identifying risk, we analyze cause of formation of different risk, and build a risk diversification model from macro, middle, and micro level of credit and guarantee company.The first chapter is introduction, discussing the background and meaning of the study, and make the content clear. The second chapter is a brief summary; firstly reviews the general theory of risk management, then indicates the importance of risk management by inducing the characteristics in the process of credit and Guarantee Company's operation, and then discuss how to evaluate the ability of risk management, finally, we briefly introduce the status of Guarantee Company's risk management of in, out-country. The third chapter mainly discusses the source of risk and cause of formation. Firstly, categorizing guarantee risk from different perspective, then analyzing the cause of formation from different main body. Based on the analysis of cause of formation, the forth chapter builds risk diversification scheme from macro, middle and micro level of guarantee company, pointing out that keeping risk away in macro level, diversifying and transferring risk in middle level, and eliminating risk in micro level constitute the risk diversification model. The last chapter concludes the paper, and pointing out that guarantee company can diversify risk effectively according to the risk model.