Risk Management Research Of XD Microfinance Company In Weinan City

The microcredit company in China was born at the right time when it was hard to finance for the small and medium enterprises as well as personal loan. The process took the other countries's experience as lessons. Since 2005, the experiment of microcredit company was welcomed by peasant household, individual businesses, and small and medium enterprises. Along with the expending of development scales and increasing of employees, these microcredit companies are faced with various risks. It is the priority among priorities that how to manage the risks effectively for these companies.This essay studies on the risk management of Weinan XD microcredit company, finds its problems and analyses how the problems to come out. It connects the risk management and operation in the real business, proposes solutions of improving how to recognize risks, how to evaluate credit ratings, how to determine risk evaluation, how to warn the risk and how to do with it. At the same time, performance management and accountability mechanisms adds in solutions. On the non-business field, the point of solutions is that how to build and improve the risk management system as well as assessment criterion of risky operation and responsibility mechanisms. Then the author comes up with safeguard measures from two aspects of internal management and external demand.It has the theoretical and practical significance in improving the risk management procedure,strengthening the internal control system, legalizing operation, and delicacy management etc. The study is helpful for other microcredit companies to complete their risk management within Shaanxi province. It will promote the development of microcredit company.