The Study On China Guarantee Corporation Internal Control Based On Risk Management

All along, the small and medium enterprises is an important part of our national economy. According to the China Statistical Yearbook2009data show that, as of December2009, SMEs in annual output value of more than half of the country’s total output value, tax revenue accounted for nearly70percent of the country’s total tax revenue, about90%of employment opportunities have played a pivotal role in the socio-economic development, reduce unemployment, maintain market prosperity, and maintain social vitality, and to maintain social stability and unity. However, because of SMEs’special social background, the difficulties in financing become a major problem facing many small and medium enterprises, so to solve the financing problem, naturally became a major issue that must be addressed in China’s economic development. In1993, the Economic and Trade Commission and the Ministry of Finance initiated set up China’s first professional credit guarantee corporation in the country-China Economic and Technological Investment Guarantee Corporation, the financing needs of the SMEs of China’s scientific and technological innovation provides a powerful supportive. This as an opportunity, the credit guarantee industry in China began to develop, has played a very important role in order to solve the financing problems of SMEs in the country. As of December2008, the National SME Guarantee Agency of4247, cumulative SME loan guarantee of1.75trillion yuan, the guarantee up to907thousand. Credit guarantee corporation in the business process, due to various laws and regulations in China are not perfect, as to guarantee the customer’s small and medium-sized enterprises the existence of weak management, poor financial situation of the shortcomings, making the guarantee corporation to bear from both inside and outside the corporation greater risk, under the Ministry of risk control capability is limited, how to improve risk management capabilities of the guarantee corporation in China, have a very important practical significance on the stability and continuity guarantee the corporation’s own business and China’s guarantee industry’s health long-term development. This paper from the perspective of internal control, CD guarantee corporation, for example, internal control system for risk management of the guarantee corporation in China, some exploration.This paper is divided into six chapters. The first chapter is an introduction, contains the introduction of a guarantee corporation risk management, internal control studies of realistic background and significance of this article, the research methods and ideas. The second chapter is a literature review, combing the results of theoretical studies on security at home and abroad. Chapter III of the basic theory of risk management and internal control are described and analyzed the relationship between risk management and internal control, this study provides a theoretical support. The fourth chapter introduces the concept of warranties and guarantees related, and our country guarantee the corporation’s risk analysis. The fifth chapter describes the laws, regulations and implementation of internal control of the guarantee corporation in China, analyzes the characteristics and problems of our guarantee of internal control and its causes. Chapter VI, is the focus of this study, with CD-guarantee corporation for example, described on the CD guarantee internal control, internal control and the existing defects, and combined with the China Banking Regulatory Commission released in July2010,"Financing guarantee internal control guidelines" for the construction of internal controls and improve risk management on the CD guarantee company were thinking, recommendations for improvement.The contribution of this paper is:I have in-depth CD Guarantee Company, By understanding the internal controls of the CD guarantee company, summed up the guarantee company internal control features; improved by analyzing the CD guarantee internal control deficiencies, ideas and suggestions, and guarantee the construction of the internal control reference; have a positive effect on research and construction of our internal control. The inadequacies of this paper is:this paper have not to establish or improve the security company risk assessment, risk warning model;the lack of quantitative research on the internal control risk assessment.