The Study Of The Operational Risk In Purchasing House By Joint Venture For Pension

With the trend of population aging in our country growing faster and faster, the number and proportion of the elderly population is increasing year by year. Although the social security system in China is going to get more and more powerful, the increasing elderly population still make the government and society under intense pressure, the pension resource especially the residence has also been increasingly scarce. However, our social system has not been developed enough to solve the problem, the financial market does also lack such products that could help the elderly get enough money to buy a new house for their old age. In this case, we propose a new type of financial products which is called "Purchasing house by joint venture for pension" to solve the problem. The new financial product helps the elderly people that have a disposition to buy a new house so as to improve their living environment but lack of sufficient founds get a channel to cooperate with the financial institutions. By this means, the elderly just have to pay a small segment of the purchase and the financial institutions will complete the remaining part. If the new. product could enter the market successfully, there is no doubt that the pressure which brought by the increasing elderly could be relieved apparently. What’s more, the living environment people faced in their old age can be improved effectively and the financial institutions have acquired a new investment channel as well. But what we should concern carefully is that purchasing house by joint venture for pension could face different kinds of risks in the process of operation, we have to make it clear and ensure the risks are controllable so as to prove the feasibility of the product.In the first chapter of this paper we briefly introduced the background and the value of the research. The second chapter mainly described the concept and characteristics of the model. While the third chapter has made a detailed analysis to the risks which the product may face in the process of its operation. We have made the empirical analysis of the operational risks in chapter four and put forward the appropriate risk prevention measures in the fifth chapter of this paper. In the last chapter we have made a summary and described the Prospects for future research.