The Study Of Trust Fund Company Business Risks Analysis And Management

Trust companies are financial organizations, but as part of the corporation system, they are striving to make profits. The profit of trust companies comes mainly from the interest margin between the trust capital end and the trust asset end. The smaller the cost for the capital end, the larger the profit for the trust asset end. The essence of trust business is actually an intermediary for financial activities. With the national policies being loosened up, the phenomenon of trust fund companies being homogenized by banks, security dealers, and sub-corporations of capital fund is becoming even clearer. The trust company profiting room is getting narrowed down.As a privately operated trust company of a provincial capital in an underdevelopment region, the company needs urgently to deal with the questions as to how to manage the smooth transition in the trust business transformation, how to gain more business sources from the seriously homogenized financial system, how to maintain the company’s market share, how to obtain stable investment capital for market, and how to control the newly developed and previously existing trust project risks. As one of the 68 nationally approved financial organizations that owns trust operation license, SCT trust company has to deal with the above issues. Therefore, two problems are of essential importance to the sustainable operation and development of SCT trust company:First, market business sources and profit uncertainty are also trust business risks. Secondly, risk management level involves the uncertainty of whether the trust projects can be successfully concluded.Based on the fundamental theories of risk management, this research studies the specific performance of the risk management by SCT trust company. Through the analysis of the company indexes, analyze in detail the internal and external risks of the company. The research also imports the specific trust project cases of the market, and at last concludes and summarizes the feasible risk management coping and solving strategies for A trust company, which will improve the recognition and prevention of trust risks by this company.This article is composed of five parts. The first part introduces the background and research purpose for studying trust risks and risk management, clarifies main research content and methodologies, and raises the counterpart research stream and frame. The second part combs through the internal business risks of the SCT trust company, and introduces the company’s risk conditions through the company indexes. The third part introduces the external risks through comprehensive analysis of four dimensions:Macro economy, business competition, invisible cost rise, and law and rules. In the fourth part this article raises questions for A company risk management through six aspects:company internal risk management, project set-up and approval, collecting capital, putting in capital, subsequent management, and problematic project dissolving. The fifth part of this essay mainly summarizes the core research strategies, based on which the article proposes specific strategies for the company under new environment as to how to fulfill and improve its risk management, and the article discloses the main thoughts about the future risk management development of this company.Trusting as one of the important composing parts of our national financial landscape, is managing the second biggest share of financial capital. Up to now it has developed typical business management systems, profiting modes, and risk management flows that fit its own characteristics. Risks can be controlled and prevented merely through detailed designing of the transaction systems, can be tackled with through professional hand lings and law procedures after risk emergence, and can be released through marketing planning and reasonable law weapons to fully protect the capital in the end. In that matter, trusting business can keep developing healthily and steadily.