Research On Risk Management Of Z Microfinance Company

Since the China Banking Regulatory Comlission(CBRC)and the People's Bank of China(PBC)issued the "Guiding Opinions on the Pilot Project of Microfinance Companies"(No.23 of the CBRC)in 2008,microfinance companies have been developing for 10 years.As a new financial service organization,microfinance companies have played an active role in effectively meeting the needs of small,decentralized,short-term small and medium-sized loans and supplementing the traditional bank credit market by pooling all kinds of social capital.However,some problems inevitably arise,such as the lack of legislation,industry norms and so on.Especially in the industry and organization's internal risk control,there are many problems,including credit risk,profit risk,liquidity risk,systematic risk and so on,which need to be highly valued.Based on the industry development of microfinance company and the practice in Jiangsu Province,this paper chooses Z microfinance company as the research object,and makes a systematic study of the company's risk management.Firstly,the related theories of credit risk management are sorted out,and the definition and characteristics of microfinance are described.Secondly,through on-the-spot investigation,questionnaires,interviews and exchanges,this paper makes a thorough study on the current situation of risk management of Z microfinance company,and analyses the main problems faced by Z microfinance company in terms of operational risk,credit risk,liquidity risk and market risk,as well as the causes of risk management.Thirdly,using the Fuzzy Analytic Hierarchy Process(FAHP)to analyze the important factors that influence the risks of Z microfrnance company,and then give some suggestions on risk management of Z microfinance company.Jiangsu province ranks among the top provinces in overall economic strength and has the largest number of microfinanee eompanies.In addition,Jiangsu Province has a relatively high level of development of microfinance companies.In that way,the problems in risk management of Z microfinance company have been remarkably common.The study of this paper can put forward to scientific risk management for microfinance companies in Jiangsu Province and the whole country and promotes its healthy and sustainable development.