The Research On Evaluating The Operational Risk Of Rural Credit Cooperatives

The rural credit cooperatives are the major financial institutions to support rural economic development in rural areas, serving rural areas, agriculture and farmers. Farmers and collective organizations become their shareholders voluntarily. The rural credit cooperatives provide financial services to members, which has a longer history, lots of branches and wide distribution in China. Since China founded The rural credit cooperatives has been reforming, and experienced twists and turns, when the new century come, the rural credit cooperatives continue to deeply reform. In 2003, Chine Pilot reforms the rural credit cooperatives in Jiangsu, Zhejiang and other six Provinces. In 2004, Fujian Rural Credit Cooperatives was included in the second batch of pilot reform, created a new supervision and management system. Fujian Rural Credit Union was formally established in July 29,2005. This was a major initiative about the management system reform of rural credit cooperatives, and marked that Fujian Province had entered another new stage of reform and development. The Reform of rural credit cooperatives has been six years so far. With the national supporting policies gradually put in place, how to reflect and evaluate the reform of the rural credit cooperatives, discover and solve the risk problems, provide reference for further deepen reform and effective development is an topic needed to be solved urgently in the theory and practice.In this study as the pilot reform of Fujian province a case, analyze business risk types and causes of rural credit cooperatives, build a evaluation system about business risk, use AHP to determine the appropriate weight, design a set of standard operating risk assessment, and then make use of the survey data collected to evaluate the business risk of Fujian Rural Credit Cooperatives, and finally according to the results of analysisThis study showed that a large increase on the overall risk-resisting ability of the nine cities in Fujian Rural Credit Cooperatives for 2005-2010, operating more and more steady. There is still some risk status differences among the nine cities. Although the overall business of Fujian Rural Credit Cooperatives is steady, but there are still some problems in f risk management, such as the imperfect structure of corporate governance, internal control system defective, unreasonable risk management, backward risk management techniques. To solve these problems, this paper proposes to improve their corporate governance structure, internal control system and the level of risk management techniques, build a good risk management culture, train relevant professionals and enhance the important role of risk management department. I hope these measures can provide some reference for advancing further and achieve the expected goals of the reform of rural credit cooperatives.