Study On The Risk Management Optimization Of Shandong Province, The State Treasury

State treasury is short for national treasury of People’s Republic of China. Treasury funds means State Budgetary Funds and other related governmental funds in and out of or deposited in state treasury. State treasury is in charge for taking in, dividing, withholding, refunding and paying sorts of governmental funds. Budget revenue should be fully deposited in state treasury according to the rules, and so should be all budget outlays. People’s Bank of China shall manage the state treasury in accordance with laws, and functions as the bank of government. The state treasury funds risk means the uncertainty of funds lost, which will have significant impact on the smooth carry-out of fiscal budget and normal operation of national economy. Therefore, the research on treasury funds risk is of great practical significance on the improvement of PBC’s government on the state funds.Based on the comprehensive evaluation of latest research, in this thesis, the author divides the potential risks during operation of funds into operation risk, management risk, technical risk, moral risk and external risk using inductive analysis. Citing real case of treasury funds risk, the author analyzes the origin according to the above classification. Taking the treasury system of Shandong Province for example, in accordance with the five sorts of risks, based on the practice of treasury management in Shandong Province, using theory and methods of general risk management, the author qualitatively analyzes the current situation of treasury funds risk management in Shandong Province from aspects of internal control environment, risk evaluation, internal control activity, information and communication, supervision and external activity, which provides realistic basis for further identification, measurement, and control of treasury funds risk.By re-identification, measurement and control of treasury funds risks, the author rebuilds treasury funds risk management system in Shandong Province. In the step of identification, referring to the recent treasury funds risk problem, the author makes reasonable analysis and identification of treasury funds risk management, quantizes sorts of risk factors, establishes treasury funds risk factors, chooses samples and calculates the index within Shandong Province, designs 75 quantization factors and sets up the index system. In the step of risk measurement, according to the identified risks, based on the treasury funds risk index system, the author builds treasury funds risk management function using function superposition of linear function and exponential function, quantizes sorts of risks in order to measure and reflect treasury funds operation risks objectively and accurately, reflects the capital risk status of a treasury by function comprehensive calculating, and tests the effectiveness of quantization index system and risk function using real data. In the step of risk control, based on the comprehensive summary of the effective experiences of treasury funds risk management, taking advantage of the research results, the author gives suggestions on improving internal control environment and system, implementing treasury funds risk management depending on information construction, reinforcing internal and external supervision and so on, further improving treasury funds risk management system. There are both difference and relation between the identification, measurement and control of treasury funds risks, which together build up the modern treasury funds risk evaluation system. Whereby, risk identification is the basis, risk measurement is the accordance, and risk control is the aim. The process from identification to measurement, is a spiral from qualitative analysis to quantitative analysis and then to qualitative analysis, which all aim in effective treasury funds risk control.