1. Overview of risk management
The risks that the company may encounter in its business activities mainly include: credit risk, market risk, operational risk, policy and legal risk.
The company's risk management implements the principles of comprehensiveness, prudence, timeliness, effectiveness and independence, covering all businesses, departments and personnel at all levels of the company, and permeating all links such as decision-making, execution, supervision and feedback, so as to prevent risks in advance, control them in the process and post supervision them, and promote the company's sustainable, standardized and healthy operation.
The company's risk management institutions and departments include: the board of directors and its risk management and audit committee, project investment review committee, risk management department, audit department, finance department and various business departments.
2. Risk management
2. 1 credit risk management
The company insists on strengthening the evaluation and identification of counterparties, and realistically analyzes the credit status of financiers, related parties, controllers and guarantors; Implement legal and effective credit enhancement measures (guarantee, mortgage and pledge), and set up multiple guarantees such as guarantee, mortgage and pledge for the same creditor's right to ensure that the second repayment source is sufficient and the risk is controllable; Pay attention to the validity, liquidity and legality of mortgage when handling mortgage loans; When handling secured loans, examine the qualifications and credit status of the guarantor; Strictly implement the system of separation of examination and loan and collective deliberation.
2.2 Market risk management
The company spreads risks through multi-field business combination, and gradually establishes a target customer base with a fixed business relationship with the company in the business areas that the company is proficient in, so as to reduce risks and losses caused by unfamiliar industries; Strengthen the analysis of the market competitiveness of the counterparty's industry, accurately grasp the opportunity of capital entry, closely follow the market, adjust the investment strategy and portfolio in time, pay close attention to the economic operation, and strictly avoid the adverse effects brought by macro-policy regulation; According to the duration of the project, the financial situation of the counterparty and the ability to adjust funds, the repayment method, price, term and effective internal control measures of trust funds are reasonably agreed to avoid the uncertainty of assets and income brought about by market risks.
2.3 Operational risk management
Organizationally, the company ensures the separation of pre-business, in-business and post-business links, and has strict and thorough control measures in all aspects of business. The company establishes an effective risk internal control system, clarifies the operational processes of various businesses, and constantly improves the corporate governance structure and internal management processes; The Audit Department shall regularly audit the company's business development and conduct management audits on various functional departments.
2.4 Other risk management
The company's management and business systems are formulated in strict accordance with laws, regulations and regulatory requirements. Through the follow-up study of macro policies and industry policies, the predictability is improved and the policy risks are controlled. The company's legal adviser and risk control department are responsible for reviewing the legal compliance of the business, so as to standardize the business behavior, control the business scope and ensure that the business department carries out trust business innovation in strict accordance with existing laws and regulations.
Second, internal control.
1. Internal control environment and internal control culture
The company has established a perfect corporate governance structure in accordance with the Company Law, Trust Law and various regulatory laws and regulations, and the general meeting of shareholders, the board of directors, the board of supervisors and the management have standardized operations. The company has built a clear and complete internal trust network control system, reasonably divided the front, middle and back offices, and created a compliant, complete and orderly internal control environment.
The company pays attention to guiding employees to establish compliance awareness and risk awareness, improving employees' professional ethics, standardizing employees' professional behavior, and gradually establishing an internal control culture and risk concept of "risk first, internal control first".
2. Internal control measures
Relying on the established internal control system, the company conducts comprehensive internal control over management activities such as decision-making, business and finance.
The company has established a relatively complete internal management system, and carried out process management through the ISO900 1 management system.
The Board of Directors and its professional profit and wealth committee, board of supervisors, investment review committee, audit department, risk control department and financial center participate in the internal control of the company according to relevant systems.
During the reporting period, the company strictly implemented various internal control systems, with standardized operation and effective measures.
3. Information exchange and feedback
The company has established a complete and standardized information transmission and disclosure system and formulated emergency management measures to ensure the timeliness, accuracy and completeness of all kinds of information exchange and feedback.
4. Monitoring, evaluation and correction
Through internal audit, business audit and other measures, the company monitors and evaluates the internal control status, continuously monitors and evaluates the construction and implementation of the internal control system of various business management departments, and puts forward suggestions for improvement. The Company shall take corresponding corrective measures in time and urge relevant business departments and posts to implement them.