A Case Study Of The Risk Control For Founder BEA Trust

Trust industry has experienced ups and downs in the past30years since the reformand opening-up policy, and finally become more healthy and normative gradually.Commercial banks, insurance corporations, security corporations and trust corporationsare collectively known as the four economic pillars of China’s financial development. Inrecent years, the rapid development of trust industry has contributed a lot to China’seconomy, especially to the infrastructure construction industry and real estate industry.However, the supervision department has not come up with comprehensive regulationsdue to trust industry’s relatively short existence. Besides, there are still wide gaps betweentrust industry and other financial institutions in risk management and control.Based on the risk control studies of trust industry both at home and abroad anddevelopment status of trust industry in the past30years, this thesis classifies and analysesthe risks in China’s trust industry and suggests the controlling methods of external risk,liquidity risk, government risk. Meanwhile, this thesis listed several specific methods ofcontrolling trust risks, such as classifying risk control, due diligence control andestablishing risk management system control. In the last part, this thesis analyses aspecific risk control case---real estate trust scheme in Founder of East Asia Trust. Thecase study conducts financial analysis, macro-environment analysis, estimated future cashflow analysis and pressure test to forecast all the potential risks and come up withsolutions according to the risks. Through exposing all the risks in this case, this thesisproposed controlling solutions according to each classified risk respectively.After analyzing the above content, this thesis systematically explained the relatedtheories of controlling trust risks and the corresponding controlling methods, and alsospecified how to apply those controlling methods in actual real estate trust scheme inFounder of East Asia Trust. Through classifying risks in trust industry and proposingcorresponding controlling approaches, this thesis contributed to constructing overall riskmanagement system, which thus will promote the development of China’s trust industry.