Research On Risk Management Of Guarantee Business Of Fujian Finance Guarantee Corporation

The importance of private sector is growing in the development process of both public and private economy.A main representative of the private economy is the small and medium-sized enterprises.Due to their size and spreading out in a variety of industries,the small and medium-sized enterprises are facing development challenges among which,the biggest one is the credit issues.To effectively alleviate or solve this problem,China began to develop the guarantee industry in the late 1990 s.The practice of guarantee industry in recent years shows that guarantee institutions play an important role in helping small and medium-sized enterprises to establish credit concept,ease the financing difficulties and improve the financing environment.While the content and form of guarantee business determine that it is a high risk industry.The risks become higher and diversified in that relevant laws and regulations,economic policies and empirical research lag behind its development needs,compared with other developed economies.In all,enhancing the level of risk management of Guarantee Industry has a significant meaning for the development of the whole Guarantee Industry and local economy as well.This paper combines theoretical research and case studies.Based on previous studies at home and abroad,it uses Fujian Financing Guarantee Corporation which is the representative of Guarantee Industry as the research case.Firstly,this paper reviews the concept and characteristics of the security services,security risks,and domestic and international risk management.Secondly,it introduces the development milestones of Fujian Financing Guarantee Corporation and business status in Risk Management System.Thirdly,in the form of case study,it analyzes the risk of Fujian Financing Guarantee Corporation.Finally,Financing Guarantee Corporation risk management problems are analyzed and the corresponding countermeasures to improve the risk control,risk diversification,risk transfer and risk reduction are presented.The purpose of this paper is to improve the risk management system and to provide some countermeasures and suggestions for Fujian Financing Guarantee Corporation.