The Construction Of Financing Guarantee Risk Management System For Hua Shang Hui Tong(Hsht) Financing Guarantee Co., Ltd-on

Nowadays, small and medium sized enterprises play more and more important role for the improvement of China’s economy and the development of the society, it is not only promoting the economic development but also bringing a large number of employment opportunity. There are some reasons for those enterprises to be valued as low credit such as small-scale, not sufficient assets and low level of technology so that they are difficult to access the bank loan. To solve the restriction for these enterprises to finance in the bank, the government positively promotes creating credit guarantee system. The financing guarantee companies take advantage of opportunity lives.In our country, the financing guarantee companies are emerging industry that is created in recent20years. It targets on serving small and medium sized enterprises, the function is to improve credit for them and the objective is to help the small and medium sized enterprises to finance from the bank or other financial institutions as well as facilitate the quick and health development of these enterprises.The financing guarantee institutions operate risk and undertake the responsibility, it faces huge risk in the process of operation and it is said to be the high risk industry in the world, therefore risk management is the key to the healthy and sustainable development for them.This paper starts from some relevant theories of credit guarantee and risk management and it mainly elaborates the standardized risk management theories of ISO31000:2009<Risk Management-principle and guide>, which is released by International Organization for standardization. This paper focuses on researching Qing Dao Hua Shang Hui Tong (HSHT) Financing Guarantee ltd., it analyzes the current situation of risk management of HSHT and also creates the risk management system that provides certain references to other financing guarantee institutions.The main content of this paper consist of three parts.The first part concludes the overview of some basic theories. It summarizes the concepts, function and features of credit, credit guarantee, risk, credit guarantee risk and risk management. It also analyzes the main risks that faced by financing guarantee institutions and elaborates the theories of credit guarantee and risk management. It mainly elaborates the standardized risk management theories of ISO31000:2009<Risk Management-principle and guide>. It laid the theoretical foundation for risk management in the financing guarantee agency operations.Secondly, it analyzes the current situation and main issues of risk management in HSHT and introduces the company’s profile, risk management system as well as the existing problems in risk management and analyzed the reasons.Finally, this paper states the risk management construction of HSHT. The risk management system is constructed from risk management target system, process operation, supported platfonn and monitoring system by applying the standardized theoretical frame of ISO31000:2009<Risk Management-principle and guide>. It is also proposed corresponding policy for existing problems to risk management system in HSHT.