To Establish A Rational Risk Assessment Methods, To Effectively Prevent And Manage The Group's Credit Risk

With the process of changing from planned economy to market economy, China Banking industry has made itself merge into the global finance system, and the ability of risk control and portfolio management has also been greatly improved. But compared with the development of China's economy, the level of risk management of China banks remain behind the times.Domestic banks may be good at operate single enterprise's risk assessment, but in respect of group company's risk management, they always feel incapable. On one hand, most of group companies are leaders in certain industry, their have great scale and advantages, and they are always vip customers of banks. It is a piece of cake for them to borrow a great deal of money from these banks. But on the other hand, if one of group companies bankrupted, banks who lent loans to it will be greatly suffered, and the bankrupt of some big group even can influence the stability of finance and economy in local area. For the sake of enhancing the control power of group companies' credit risk, China banks remain have a lot of works to do.Credit portfolio risk management is a very complicated and systematic process. It involved many key sections including investigation, assessment, and monitoring, and a series of works, such as collection of enterprise's information, review of the documents, credit approval or decisions, and inspection of loans. All of these should be done well to confirm all credit risks are under control. For the author himself, analyse all these aspects of process are impossible, so he decide to begin with a true case happened in Jiang Su Province, and under the guidance of the CBRC ,to tell what kind of group companies' risk characteristics appeared recently. From the view of assessment and review, and combined with two cases, author hopes to help readers to understand how to estimate and judge the risk from single enterprise to group companies, and how to focus on the main point of view and key areas of risk management.