Research On The Improvement Of Internal Control Of Working Capital Loan Guarantee Project In JiXin Guarantee Company

The credit guarantee industry is a rising sun industry in our country,which has a history of more than 20 years since its establishment.The purpose of its establishment is to support the development of small and medium-sized enterprises(SMEs)and solve the problem of financing difficulties for SMEs.As a bridge between SMEs and banks and other financial institutions,the credit guarantee agencies have received strong support from the state and all levels of government agencies in the development process.They are promoting the healthy development of SMEs,maintaining regional economic stability,and alleviating social employment pressure.However,the guarantee industry is also an internationally recognized “high-risk,low-yield” industry.Due to the long-term rapid development and lack of supervision,various guarantee agencies have many defects in internal management,risk control,etc.and especially the risk identification and risk management of the credit guarantee agencies are not stronger than banks.There are no effective control mechanisms in the areas of pre-guarantee investigations,guaranteeing reviews,post-guarantee tracking,risk compensation,and recovery,and cannot effectively prevent or cope with the business risks and management risks arising in the business process.From the perspective of internal control,taking Jixin Guarantee Company as the research object and the working capital loan guarantee business as the starting point,this article analyzes and summarizes the defects of the internal control of the company's working capital loan guarantee business.Inadequate,incomplete assessment indicators,poor awareness of management risk control,and lack of evaluation and supervision mechanisms led to the failure of its internal control to a certain extent,and increased the risk of guarantee business.Therefore,optimizing and improving the internal control mechanism is a problem that Jixin Guarantee Company is currently eager to solve.The framework of this article is as follows: Firstly,the research background,research significance,research methods and content were elaborated.Secondly,it introduced the guarantee business of working capital loan of Jixin Guarantee Company,including its business model and pointed out its problems.Then,using the internal control theory,the internal control environment,risk assessment,internal control activities,information and communication,and internal control supervision were analyzed in-depth to analyze the problems existing in the internal control of the Jixin Guarantee Company's working capital loan guarantee business.Finally,on the basis of the above analysis,we put forward several suggestions on improving the internal control of the company,including improving the control environment for the internal control of the working capital loan guarantee business,establishing a risk assessment mechanism for working capital loan guarantee business,implementing an effective working capital loan guarantee business internal control activities,strengthening information exchange and communication of internal control of the working capital loan guarantee business and strengthening the supervision and evaluation of the internal control of the working capital loan guarantee business,so that the company can use its own ability to resolve the business risks and realize the development strategy and business objectives,to achieve the purpose of applying mature internal control theories and norms to the construction of credit guarantee institutions' internal control systems.At the same time,with the management practice of the company's internal control provided by Jixin,it provides references for other guarantee agencies to improve their internal control mechanisms.