Research On Risk Management Strategy Of JC Finance Guarantee Corporation

Medium-small sized companies have attracted an extensive attention in view of their key role in national economy.In the meantime,however,due to small scale and low credibility of small-medium sized companies,financing problems have severely restricted their development.As a system arrangement,financing guarantee intends to solve this problem.But it is also very risky and effective methods are in dire need to control these risks.By referring to literatures both at home and from abroad,this dissertation has selected JC Finance Guarantee Corporation as research object to explore causes to risks as well as their categories.Then it is followed by an introduction to theories related to financing guarantee and the business model of financing guarantee industry in China.Finally,enterprise management theory is used as a guidance theory to establish a basic framework for an overall risk management system,aiming to control risks confronting financing guarantee companies.With an analysis in depth,it is found that even though these risks are high,they are controllable and can be effectively controlled by establishing an overall risk management system.The establishment of overall risk management system involves setting of targets and identification of management process and construction of supporting facilities.The setting of targets entails the construction of strategy,operation,reports and implementation.Management process is a closed loop involving incident recognition,risk assessment,risk response and supervision,and it is targeted at controlling risks dynamically and continuously.The construction of supporting facilities is a process of building favorable internal environment,activity and information controlling system,to guarantee the working of the whole system.