A Study On The Risk Identification Of The Rurual Mutual Fund Organizations

As a new type of rural cooperative financial institutions,the rural mutual fund organizations can ease the problem of insufficient supply of rural finance.However,bank run and bankruptcy of the rural mutual fund organizations often occurred in practice,which seriously affect the healthy development of the organization.It is quite necessary to build a theoretical model suited with the risk characteristics of rural mutual fund organizations and to identify the key risks.By referring related theories and refining practice,the paper builds a risk model on uncertainty of the external environment and adjustment of internal organization,and uses the methods of factor analysis and case study to identify the risks of the rural mutual fund organizations.The paper defines the main concept,reviews the related literature on the rural mutual fund organizations and financial risk.On the basis of analyzing the internal and external condition of the existence of rural mutual fund organizations,the paper builds the risk model.The paper briefly introduces the development of rural mutual fund organizations,portrays the problems on external regulatory,emergence and development,organizational operations and management and sums up the features of risks.With data obtained from 36 rural mutual fund organizations,the paper uses the method of factor analysis to identify the key risk types of the rural mutual fund organizations.In order to analyze risk formation mechanism,the paper utilizes comparative analysis method to analyze the case F in County B and case Y in County S and obtains the possible causes of the risks of the rural mutual fund organizations.Main conclusions can be drawn based on the above analysis:internal governance risk,managers risk and external competition and regulatory risk are the key risks;Sound internal governance mechanism and actively participation are helpful to regulate the operation of rural mutual fund organizations;The effective use of social networks of managers can strengthen the basis of trust among members and enhance the active participation of members;Ordered external competitive environment provides space for the development of rural mutual fund organizations and effective external supervision of the credit union's risk control plays a good role in guiding supervision.Based on the listed conclusions,the paper proposes the following policy recommendations:understand the key risks,build sound internal governance mechanism to restrict the internal control;enhance the participation of ordinary members and enhance the connection among members;regulate the rural financial market environment;improve the regulatory policy.