The Research On Chinese Guarantee Company Internal Control Based On Overall Risk Management

Small And Medium Enterprises are the important part of national economies, but the difficulty infinancing is an important factor affecting the healthy development of Small And Medium Enterprises.To help solving the difficulty in financing problem of Small And Medium Enterprises, many foreigncountries began to introduce credit guarantee mechanisms for building bridges between Small AndMedium Enterprises and banks to solve the problem of financing Small And Medium Enterprises longago. China’s credit guarantee industry began to develop in the1990s, which is under the auspices of thegovernment’s policy guidance, in1993, China’s establishment of the first security company–ChinaNational Investment&Guaranty Co., Ltd., marking the birth of China’s security industry. Until now,China has formed a "one form, two wings, three layer" as the main feature of the relatively perfectSmall And Medium Enterprise credit guarantee system. Guarantee industry is recognized ashigh-leverage, high-risk industry, in order to achieve sustainable and healthy development of thecompany’s operations, perfect internal control system and advanced risk management philosophy isessential. Comprehensive risk management philosophy of strategic, full participation, professional,double and systematic characteristics at high risk for the security company is more applicable. SinceChina’s guarantee industry started late, development is relatively fast, but the guarantees company’sdevelopment objectives and management philosophy has not kept pace, resulting emphasis on internalcontrol is not enough, risk management awareness is not high, a detailed comprehensive riskmanagement philosophy system did not form, our company’s internal control guarantees mostly aredrawing commercial bank’s internal control system, in which there are many defects. Therefore, toimprove the Guarantee Corporation’s risk management capabilities, improve their internal controls isthe most urgent problem in the development of China’s guarantee industry.This article is from the perspective of internal control, combined with comprehensive riskmanagement philosophy, analyze the A guarantee company’s internal control situation, and made anumber of recommendations to improve its internal controls. First, the content of the internal controland risk management were fully explained, including the COSO report on internal control theory, content and features comprehensive risk management, the relationship between internal control and riskmanagement and improve overall security company based on a comprehensive risk managementanalysis of the importance of internal controls, providing theoretical support for the following researchSecondly, analyze the Present Situation of China’s security industry, describes the development processof China’s security industry, and from both external and internal to analyze the risks China’s GuaranteeCorporation facing, the company guarantee for the existence of the internal control of the securitycompany’s internal environment disorder, risk management systems, and risk management conceptbehind the scarcity of talent and professionalism of the other major problems were analyzed; thenthrough case analysis, analyze the A guarantee company’s basic situation, internal control andoperational conditions, pointing out its main problem in internal environment, goal setting, riskassessment, control activities, the main problems of information and communication and internaloversight; finally, propose the design to perfect A Guarantee Company’s internal control undercomprehensive risk management, respectively, from the overall level and specific level of internalcontrol, made specific recommendations for A Guarantee Company’s internal control improvement.Through this study has not only improved the A Guarantee Company’s internal control, but also has acertain reference value for the other guarantee company.