1, credit risk
Warburg Trust Company pays attention to the due diligence of counterparties, has strict review standards for loan business, and closely follows the loan. By the end of 2006, the company's overdue loans were zero.
Strictly control external guarantees. By the end of 2006, Huabao had no external guarantee except the 2.43 million guarantee left over from history before 1998 re-registration.
Non-credit assets: the main investment direction of Huabao's inherent property and trust assets is the open capital market. For the selection of securities brokers, Huabao Trust Company selects securities brokers through the trust network capital adequacy ratio, transaction accuracy, credit status and other aspects, and regularly reviews the conditions of the selected securities brokers.
2. Market risk
Warburg Trust Company has a professional investment team with high investment level, and its management system matches the investment direction. Through the separation and restriction of research, decision-making, operation and control, market risks can be basically controlled. The relevant models are used to dynamically monitor and correct the market risks of investment stocks and portfolios in real time, and the investment scope and the proportion of various investment products are limited by setting up a securities investment alternative library. It also emphasizes the diversification of business structure and the degree of risk hedging between different businesses. Through the innovation of business model, Huabao's overall ability to resist market risks will be improved. For the exchange rate risk, Huabao Trust Company closely tracks the changes in the current balance of payments and foreign exchange reserves, pays attention to the changes in national policies and takes corresponding measures. At the same time, it also closely tracks macroeconomic changes to enhance predictability and prevent interest rate risks.
Huabao Trust Company's effective market risk control ability ensures the company to achieve good investment results. Warburg remained profitable when the stock market fell sharply in 2004 and 2005.
3. Liquidity risk inherent assets: the company's inherent assets are of good quality, and all kinds of impairment reserves have been fully withdrawn and the provisions are sufficient. Transitional assets such as accounts receivable and other receivables account for less than 65,438+0% of total assets. When the company was established, the assets to be disposed of due to merger and acquisition were 30.7 million yuan, and the impairment reserve was fully accrued in 2004. The company's short-term investment impairment reserve has been fully accrued, and the overdue self-operated loan is zero. The quality of the company's assets is excellent, and the net assets after various losses in the last three years are all above 654.38+0 billion yuan. The company's proprietary business assets are all high-quality financial enterprise equity, exchange-listed securities and cash, with excellent liquidity and good asset quality.
Trust assets: Warburg Trust Company's due trust projects have been liquidated and paid according to the contract. The assets of the surviving trust project are in good condition and there are no bad trust assets. Trust contract payment pressure is relatively small, and the compensation reserve for trust projects is withdrawn every year according to regulations, and the trust reserve is fully withdrawn. At present, the company's current assets are of good quality and have a strong ability to undertake trust compensation responsibilities.
4. Other risks
There are no major employee moral risks and business risks, no commercial bribery cases, and no major customer complaints.
Overall assessment of risk control
Warburg Trust Company abides by the trust law and trust documents and handles trust affairs for the best interests of beneficiaries. The management of trust property shall abide by the duties, fulfill the obligations of honesty, credibility and prudent and effective management, and shall not harm the interests of the beneficiaries. The expired trust plan can be successfully concluded and liquidated in accordance with the contract, and the existing trust products run smoothly with excellent income performance;
Since its establishment eight years ago, Huabao Trust Company has achieved a cumulative income of 5.8 billion yuan for customers and achieved good social effects.
The company has established a three-level risk management organization system under the direct leadership of the board of directors and management, relying on risk management institutions, closely cooperating with relevant functional departments and closely contacting various business departments.
The company's good governance structure and complete risk control system effectively control the credit risk, market risk, operational risk, policy risk and moral risk in business activities, and avoid the impact of other industry risks on Warburg Trust Company.
Warburg Trust and Investment Company Award
Warburg Trust Company attaches great importance to the cultivation of its own credit and goodwill, especially information disclosure, and is willing to accept public supervision. In 2004, when the trust industry was in a downturn due to the credit crisis of some trust institutions, Huabao took the lead in disclosing the annual report in the public media, which was evaluated by the society as "a good man holds up his hand" and established an image of honesty for the trust industry. Therefore, the organizational structure and risk control system of Huabao Trust Company cover the whole business process in a multi-level and all-round way, which is a scientific and effective profit and can ensure the sustained and standardized business development of Huabao Trust Company.