HH Microfinance Company Risk Management Research

The emergence of small loan companies, play an important role in promoting people’s living standard and economic development. But at the same time, Small loan companies also faces the increasingly risk. In addition, with the progress of urban-rural integration and the great demand for funds under the background based on the service to agriculture, rising of the urban and rural integration, and based on the service to agriculture, although Small loan company has achieved certain developments in the condition of national investment increased, but there also have many problems in legal environment is not sound, lacking of financing capacity and low operation security. Especially since recently for a period of time, along with the change of the way of folk financing and the progress of rural financial market, the risk of small loan companies is more obvious. In view of the problems in the operation and management, the current urgent task is how to the analyze the operational risks according to the features of Small loan companies, at the same time improve the defects of Small loan companies, to achieve the successful operations of the Small loans company. Based on this status, this article take HH small loan company as example, to explore the risk in the company’s current problems, combining with the analysis of existing problems, this article propose the specific optimization and guarantee measure in the end.This article is divided into seven parts. The first part is the introduction, this paper discusses the research background, purpose, status quo and research approach. The second part is theoretical overview. Explore the related theory of small loans and the basic theory of credit risk management, settle a solid theoretical for the discussion of subject research. The third part analyzes the risk control situation of HH small loan company, analyzed the business process and current situation of HH company, the status of the HH company’s risk management. The fourth part discusses the problems of risk management in HH small loan companies, first proposed the establishment of the index system of risk identification, secondly discusses the risk identification index system used in HH small loan companies, based on the basis of identification index system application, has been obtained the five major problems. The fifth part analyzes the reason of risk management problems of HH small loan company, including the limits of social policy environment and the social credit system is not sound, internal risk management awareness and basic knowledge is weak and lack of professor in risk management. The sixth part puts forward how to control and prevent the risk, mainly from strengthening internal control, by opening up the financing channels, strengthen cooperation and diversifying sources of funds and optimize the company’s internal and external environment, strengthen loan management. The seventh part is the summary and expectation, on the basis of summarizing the full article, the further direction were discussed.