Case Study Of The Internal Control Of ZX Guarantee Corporation

Internal Control is the basis of managing risks for guarantee corporations, which is also the key to keep constant and steady operations. Whether the impact of the implementation of the global financial crisis occurred in 2008, or currently, as China’s real estate industry regulation, gradual liberalization of capital markets and other macro-economic policies, and since the beginning of this year, the decrease in economic growth and other objective factors, the banking industry experienced the management "winter" have brought guarantee corporations caught in the survival opportunities and challenges. But in terms of the security industry:to withstand the challenges, we must have a more unique ability to control the risk than the banking industry, the challenge may become a development opportunity. As we all know:guarantee industry is a high-risk industry, the product operated by guarantee corporations is the "risk". How to manage risk in a controllable range is an inevitable answer for every each business of each guarantee corporation must face, but only there are differences in difficulty.In this paper, ZX security company is taken as a research object to sort and analyze through its original fragmented rules, identifying the internal guarantee corporation’s meeting point between the internal control and risks control (ie:key risk points), by conducting its internal control analysis, suggestions of its internal control deficiencies were put forward, thus contributing to its strategic goals. This paper consists of 5 parts. The first part is the introduction, describing the background and literature review, research methodology and content as well as innovative and inadequate. The second part is an overview of the internal control guarantee industry, introducing the development history of guarantee industry, the main contents of the internal control of guarantee industry and the main methods. The third part is the internal control status quo of ZX Guarantee Corporation and the main problems, mainly introducing the generated background and overview of ZX Guarantee Corporation, internal control situation and existing problems. The fourth part is the keynote of this article, which has proposed countermeasures of its internal control deficiencies by combining description of the third part with China Banking Regulatory Commission in July 2010 release of "Financing Guarantee Company’s Internal Control Guidelines". And the fifth part is the conclusion, the author believes that implementing effective internal control is the basic premise of guarantee corporations to manage risk. The possible contribution of this paper is to analyze internal control deficiencies of ZX Guarantee Corporation, through in-depth investigation of internal control implementation ZX Guarantee Corporation and to specifically propose internal control system development for the targeted company’s risk management, according to peg the "key risk points" approach. We do not only play "escort" role for the company to achieve strategic objectives, but hope to play a valuable effect for the healthy development of the security industry as well. However, the inadequacies of this article are the absence of quantitative research on internal control risk assessment.