Guarantee Company Risk Control Mechanism

Guarantee Company of SME credit guarantee system is an important part is to solve an important way for financing of SMEs. But the guarantee is by absorbing banks are reluctant to take or not take the risk of obtaining security income, is operating credit, risk management industry, the high-risk sexual recognized around the world. If there is no comprehensive legal mechanism for risk control, the security company is likely to be high credit risk agencies, often caught in the quagmire damages, resulting in a security company unsustainable. Therefore, as a high-risk industries, with specialized risk control capability, for the health of our security industry play a critical sustainable development and function. This article is based on the practical needs of China’s credit guarantee, select the security company’s risk-control study. This is always a security risk to control the focus on the main line to start and in-depth study.This chapter discusses the meaning of risk insurance, credit, credit guarantee institutions identified with high risk characteristics, learned trades in the credit guarantee system to establish the importance of risk control. Then the source from the security company’s risk analysis of specific performance of the source, including four areas:from the main business risks, including financial risks and operational risks; from the risk management objects, mainly refers to the credit risk; from Government’s risk, including inappropriate government intervention and policy risks; from the security system and the risk of the legal system, mainly refers to the asymmetric relationship between bank and insurance and legal system is imperfect. The risk of these areas, covering the risk of our form of guarantee companies. To understand the security risks of the company’s specific form, the response to these specific risks, summed up the theory of specific risk control system, including the six mechanisms:environmental protection mechanisms, risk prevention mechanisms, risk transfer mechanisms, risk spreading mechanisms, risk compensation mechanisms and legal regulatory mechanisms. Environmental protection mechanisms, including a sound legal system and good social credit system; risk prevention mechanisms, including market access system and the credit investigation system; risk transfer, including further security, counter-guarantee and reinsurance system; the risk of spread between the bank and insurance system means that risk-sharing mechanisms; risk compensation mechanism is the financial compensation mechanisms; legal control mechanism is a clear regulatory agencies and a comprehensive monitoring system.The second chapter of the development of China’s security and risk control of the company’s current situation. Security structure in China from 1993 to the present development can be divided into three phases:first phase from 1992 to 1999, started to explore the basic features of the second phase from 1999 to 2002, the basic characteristics of a national level to actively promote, the performance of the State Council departments issued a number of normative documents listed on the bonding company to adjust, and through a series of financial and other support to encourage the active form throughout the country. Since 2002 the third stage, the basic features of a comprehensive sound, the most obvious sign is the period 2010 3 State Council, China Banking Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Commerce, People’s Bank and SAIC jointly issued "Interim Measures for the financing of security management" (hereinafter referred to as "measures"). Through three stages of the general, to understand the development of our security agencies and the legislative history background. Guarantee company in China has also shown some of the features, security is an important form of guarantee agencies, private capital participation increasing in China, more than 85% of small and medium enterprises to carry out security operations. Therefore, a good security company’s risk control, not only to protect the security industry’s healthy development is also an important way to promote SME development. Guarantee company in China in the research status of risk control mechanism, we have established risk control in accordance with the above theoretical system, item by item analysis. In the external environment, performance requirements for the effect on the level of security companies is too low, the social credit system is not perfect; in risk prevention, credit investigation system is imperfect; in the transfer of risk, the country only a small amount of re-guarantee system and not specific lack of counter-guarantees and re-insurance provisions; in risk diversification, the security companies and banks there are many problems; in risk compensation, lack of external funding compensation mechanism; in legal regulation, localization and there is not a clear long management.This chapter study of foreign security companies risk control mechanisms, and raised the risk control mechanisms in China Construction. We selected the common law and civil law in the United States, Japan, together with the characteristics of a security system parity with South Korea to study. United States, the main characteristics of the risk control mechanism is a unified national regulatory bodies, have a sound legal norms, the credit investigation, through the U.S. Small Business Council established under the Loan Guarantee scheme, the planned system is in financial compensation, by the Government’s financial burden, the risk diversification, the implementation of quota system guarantees, risk transfer, the request for loan collateral, have anti-security measures. Japan’s risk-control mechanisms are the main features of the system is more than government-funded credit guarantee associations, the regulators, the national leadership by the specific regulation, strict market access system and regulatory system in the credit investigation, Japan’s credit investigation system is the self-based system, through the credit guarantee associations to provisions of the constitution. Risk transfer, the Japanese established the credit insurance system, that is, the risk of further compensation insurance system, including internal compensation and Japan, both external compensation. South Korea’s risk control mechanisms are the main features of credit guarantee system for national credit guarantee fund by the composition of the Executive Board by the Policy Committee and to supervise the system in the credit investigation, credit investigation system in the form of law to be established, a legal-based system. In risk diversification system, security system, proportional, risk compensation, from the government budget for the implementation of venture capital compensation.ChapterⅣof this paper for the second chapter summarizes the lack of risk control systems, learn from the third chapter summarizes the risk control mechanism of foreign inspiration to us, in accordance with chapter summary of the theory of risk control system, put forward to improve our security risk management company legal countermeasures. Including the strengthening of social credit system construction of the law, a legal self-confidence and self-discipline combined with the legal system of investigation, re-establish security institutions guarantee, counter-guarantee and reinsurance legal system, dispersion of risk between the bank and insurance legal system, a risk of external compensation legal system, to determine a unified national regulatory bodies.