A Study On Comprehensive Risk Management Mode Of Trust Companies In China

Trust as a financing institution that can span multiple investment fields such as banking,securities,and industry,its complexity and risk exist.In 2018,trust companies face strong financial supervision.The channel business is facing a contraction and de-leveraging is increasing.As a high-risk,high-credit financial enterprise,the business and scale of the trust company are growing steadily,and the risks faced by the company itself are also rising.Under the background of high-pressure supervision and trust companies’ urgent transformation,risks and opportunities coexist.So,how to conduct risk management and how to build a risk management model is of great significance to the stable and sustainable development of trust companies.After studying the current situation of the trust industry and the risk management mode of the trust company,this paper selects the G Trust Co.,Ltd.as a case,starting from five aspects:credit risk,market risk,liquidity risk,operational risk and compliance risk.The existing risk management systems and measures have been deeply researched and analyzed.It is found that credit rating system and follow-up management need to be improved in credit risk management;market risk management methods and systems need to be strengthened in market risk management;Capital strength is a major weakness,and the business innovation layout still needs to be sustained;in terms of operational risk,the process needs to be streamlined,the information system needs to be strengthened,and the quality of personnel needs to be improved;in terms of compliance risk,the system and monitoring indicators need to be refined.This paper deeply analyzes its shortcomings,and then proposes corresponding improvement measures for these risk management practices.And from the aspects of supervision,company and business,it gives some suggestions for the future risk management of the entire trust industry.It is hoped that there will be some reference to the establishment of a risk control system in line with China’s reality,which will play a positive role in ensuring the steady development of the trust industry.