Henan XF Incestment Guarantee Company Financial Risk Warning Model Research

Along with the state policy support for small and medium-sized enterprises, a largemumber or guarantee company in China increased rapidly over the past ten years, which havebecame an attractive industry. However, with the development, many negative news out, theboss running phenomenon emerge in endlessly included, which cause the number ofguarantee institution decreased. HeNan XF investmen guarantee company is a privateguarantee company in HeNan province. Influenced by internal and external factors, itsfinancial risk began to appear. Outside under the influence of the domestic economy which isdownward at present, internal influenced by its own funds on a small scale, lacking of riskmanagement. Above all problems constantly lead to company facing financial risk, and exitthe industry finally. How to control financial risk and reduce the guarantee companiesoperating difficulties, becoming the key problems to be solved in the new economic situation.So to establish a financial risk early warning system of HeNan XF investment guaranteecompany can monitor the company’s index and find out the financial risk occurs in a timelymanner. Then company can take measures to prevent risks and return to normal operation,that is why I wirte this paper.First, this paper studies on the guarantee company finacial early warning research statusat domestic and abroad. Then analysis the main performance of guatantee risk and thefinancial risk of HeNan XF investment guarantee company, so I think it’s necessary toestablish financial risk early warning system. According to combine with the specificfinancial risk of guarantee company, the paper respectively from four aspects of the profitability, debt paying ability, operation ability and development ability establish financialwarning index cordon. Then through visiting the company and industry professionals, set thewarning intevals and synthesis early warning system. At last, use the data of HeNan XFinvestment guarantee company to inspection financial risk eary system, respectively from thefour ability idex and synthesis system analysis.Through this paper research findings, set up the financial risk early warning system ofHeNan XF investment guarantee company can find its financial risk, and the financial risk ismainly reflected by indicators, which is guarantee business income rate, liability reserverequirement rate, guarantee fund magnificationg, compensatory recovery rate and industry concentration rate. Correspondingly, the paper gives optimized advises from four aspects ofhe profit ability, debt paying ability, operation ability and development ability. Firstly, HeNanXF investment guarantee company should strengthen business innovation to increase theincome of the business, and improve the continuous profitability. Secondly, HeNan XFinvestment guarantee company should ensure sufficient capital and improve solcency ability.Then, HeNan XF investment guarantee company should reduce the risk compensatoryguatantee project and maintain operating capacity. Lastly, HeNan XF investment guaranteecompany should reduce the concentration of industry and customers and maintain long-termdevelopment ability.