Research On Risk Management Of HN Guarantee Company

Small and medium-sized enterprises which play an important role in china’s national economy are gradually becoming the main force to enhance the social productivity. However, the problem of small and medium-sized enterprises’having difficulty in getting loans at the same time becomes the main bottleneck that constrains the development of these enterprises. In recent years, the tight liquidity and the pressure of currency inflation keeps raising. In this case, the problem of fund shortage’s worsening, profit shrinkage and financing difficulty attract extend social attention. Hence small and medium-sized enterprises credit guarantee agencies come into being as a hub to link small and medium-sized enterprises and commercial banks mainly to solve the problem of high cost and harsh condition for the enterprises in financing.Credit agencies exist between enterprises and commercial banks, carrying out intermediary service activities that combine the credit certificate with asset liability. The agencies require the warrantee to provide certain guarantee that could upgrade the vouchee’s credit grade. For this reason, the credit agencies are widely accepted and favored by the small and medium-sized enterprises. But the essential purpose of credit guarantee is to scatter, prevent and transfer the risk. The business in itself suffers high risk; therefore, it is of crucial importance for the guarantee companies to build a rigorous and overall risk management mechanism on the basis of perfecting the business process.The first part of this thesis introduces the theory of credit guarantee and risk management, mainly studying the theory and basic framework of enterprises’overall risk management. The second part takes HN Guarantee Company as an object of study to describe its general situation, business operating process and existing risk management system including the problems of it. The third part puts forward a new mode of company’s risk management by the concept of ERM framework. The conclusion was made in the fourth part, summarizing the whole content of this paper and raising expectations for the future. The paper arguing the assumption to improve the risk management system of HN company aims to be helpful in promoting the sustainable development of the guarantee business rapidly and healthily, which ultimately to attain the goal of serving the small and medium-sized enterprises better.