Case Study On Risk Control Of Financing Guarantee Company X

Under the wave of economic globalization, China is becoming the world's second largest economy. The small and medium-sized businesses which make outstanding contributions to the economic development of China, have gradually become one of China's most important economic forms. However,the difficulties of financing are always fettering the pace of small businesses' development, and this is why our government attaches great importance to it. In 2017, Premier Li Keqiang has pointed out in his report on government work that the expected goal of this year's development is to promote financial resources to flow to the entity economy as much as possible, especially the "three rural" and small micro businesses. The policy of supporting the development of small and medium-sized businesses, will effectively alleviate financial difficulties of them. In order to achieve this goal,the importance and necessity of the guarantee industry are highlighted.It is well known that the guarantee industry is dealing with risks every day, and this nature leads the guarantee company to be at an imbalanced condition of high risks and low returns. In particular, some small and medium-sized private guarantee companies have neither the government nor powerful consortiums as a backstop to cover their losses. Therefore, if the guarantee companies want a going concern with good profitability, it is important and necessary to do a good job of risk prevention,identification, controlling and resolving. How to extinguish the risky flames of guarantee projects,timely control and solve the problem when the risk comes into being are what the guarantee companies must face.This paper uses the method of case analysis to study the risk control of Jiangsu X financing guarantee company. It first skeches relevant theoretical basis of the financing guarantee industry. Next, it makes an introduction of Jiangsu X financing guarantee company, which states the industry environment of this company , its daily management and risk status of current external guarantee. It analyses three actual guarantee cases of Jiangsu X financing guarantee company. The analysis was organized from the whole process of pre-investigation, Post-tracking, and compensation processing, and combines with the previous theoretical methods and X company's actual operation process. Through the case study, the author finds out the shortcomings of X guarantee company in risk control, and puts forward some improvement suggestions. At last, it gives pertinent suggestions for small and medium-sized finance guarantee companies like X company.