Research On The Risk Management Of A Guarantee Company Based On The COSO Framework

The coming into being and development of small and medium-sized enterprises'credit guarantee agencies have exerted important influences on the global problem of relieving the difficulty in small and medium-sized enterprises financing. Yet credit guarantee business is a special business operating credit, which in itself is an internationally-acknowledged"high risk and low profit"business. At present, although many guarantee agencies in China have established some risk management regulations, the efficiency of risk control is still low. Frequent occurrence of project risk of many guarantee agencies seriously hampers the image and sustainable development of the whole business. This paper argues that for credit guarantee business, especially such special business as policy guarantee mechanism, which is public trusted, highly risky, and representative of certain government function, it is not sufficient to ensure the effectiveness of risk management just on the basis of conventional risk management thoughts. Thus, it is necessary to introduce a basic framework of internal control based on overall risk management theory, providing a zero-gap full-coverage overall risk management system for credit guarantee agencies. This thesis consists of four parts..The first part researches into the guarantee project and guarantee agency risk control theory, and COSO enterprise internal control and overall risk management theory. It gives a detailed analysis of the various sources and characteristics of risk factors which credit guarantee agencies are faced with, and then suggests of introducing overall risk management thought and system in credit guarantee agencies. Taking A guarantee company in Hunan Province as the object of research, the second part introduces the present state of its operation and risk management, and discusses, from the angle of overall risk management, the existing problems and their causes in risk management of A guarantee company, thus lays a foundation for furthering its reformation in overall risk management. The third part is based on COSO enterprise internal control and the framework theory of overall risk management. It designs an overall risk management system consisting of four modules: environment, target, assessment, and procedure of overall risk management, according to the risk characteristics of credit guarantee business, and the management characteristics of A guarantee company. It also comes up with some concrete measures for improvement, mainly including such aspects as the improvement of corporation administrative construction and organizations, the construction of overall risk management culture, the improvement of personnel resource policies, the improvement of risk assessment system of guarantee projects, the optimization of guarantee business procedure, and the conception of informationization construction of guarantee business. The fourth part analyses through concrete evidence research the superiority of the overall risk management system of A guarantee company after the improvement. Through improving the overall risk management of A guarantee company in Hunan province, this thesis explores the ways to combine the theory of overall risk management and the practice of risk management of credit guarantee agencies, with a view to enhancing the risk management standard in credit guarantee business in China, and contributing to promoting the stability and healthy development of the whole guarantee business.