Financial companies should enhance their awareness of risk management, and predict and evaluate risks according to the production situation of the parent company of the group and the changes of external economy. The following is what I share with you about the risk management and control of financial companies in enterprise groups. Welcome to read and browse.
1 Risk Source of Group Finance Company
1. 1 capital risk
According to the Measures for the Administration of Finance Companies of Enterprise Groups, the registered capital of the parent company before application shall not be less than 800 million yuan; The total annual operating income of the unit is not less than 5 billion yuan, and the proportion of net assets is not less than 30%. This clause invisibly reduces the capital risk of the finance company of the group enterprise, and only electric power enterprises and chemical enterprises are eligible to apply. However, due to the high source of funds for their main business, these companies do not care about the operational ability of financial companies. After some enterprises register financial companies, they regard them as exclusive banks and immediately use most of their registered capital for production, which makes the financial companies lack funds and causes small-scale capital risks.
These financial companies only play the role of financial management for the parent company, and do not play the role of financing consultants. They are unprofitable in their daily operations and have no large-scale assets. Once the parent company of the group encounters difficulties or wants to develop and construct, the finance company can only apply for loans to provide financial support for it, resulting in financial risks.
1.2 liquidity risk
The stronger the liquidity, the lower the risk. The difference between group finance companies and ordinary finance companies is that ordinary finance companies have various sources of funds for lending and debt business, and the CBRC has formulated various bills to help ensure their interests and normal operation. However, only the parent company of the enterprise group is the main source of funds, so enterprises will not give priority to the operation of financial companies to improve their liquidity when the whole enterprise encounters financial difficulties; Instead, finance companies will be asked to borrow money from outside to help the company. As a result, financial companies have less access and poor liquidity. During the whole economic downturn, they faced the crisis of bankruptcy of the parent company of the group.
1.3 credit risk
Credit risk is directly put forward in the credit of the parent company of the group, which has an impact on the financial company. As mentioned above, some enterprises have poor turnover and turn their own capital risk into liquidity risk of financial companies. This situation is manifested in two aspects: 1, the enterprise has the ability to repay, but only considers the production of the enterprise and does not hand over the excess funds to the financial company for management; 2. The enterprise is unable to repay the loan business of the finance company due to poor turnover, which leads to credit risk. This is due to the lack of credit of the parent company of the group, which brings credit risk to the financial group.
Some companies will also interfere in the decision-making of financial companies. Because the financial company's main source of income is provided by the group parent company, the group parent company forces the financial company to lend money and stipulates the loan amount, which will interfere with the risk management of the financial company and make it impossible for the financial company to clearly review investment projects and conduct risk assessment. When there is a problem in the investment project, the finance company cannot take effective preventive measures immediately.
1.4 market risk
When the government macro-controls the market, it will also cause financial risks, which are manifested in changes in interest rates or exchange rates. Finance companies are temporarily unable to fully recover their investment funds, resulting in higher costs and lower returns. After investing, finance companies should always pay attention to the market dynamics, set aside a part of the original planned reserve funds, and adjust them in time if there are problems, which will not affect the normal operation.
2 China's enterprise groups, the status quo and shortcomings of financial companies
2. 1 Management Status of Finance Company of China Enterprise Group
With the changes of the times, there are nearly 160 financial companies in China's enterprise groups, but the business scope of financial companies still has strong limitations. According to the statistics of the financial companies of five major enterprises in China in 2008, the main business forms of 46 companies are deposit, loan and settlement, of which 30% will be engaged in guarantee trust business and 65,438+00% will be transferred from municipal credit assets. Among these businesses, the settlement business has the highest economic benefit, reaching 65.438+4053 billion yuan, followed by deposits and loans, but only over 630 billion yuan.
Next, further investigate 15 enterprises, of which 6 enterprises have not formulated corresponding risk assessment systems; There are seven companies that have systems formulated by the parent company of the group. Among them, three risk assessments have no impact on salary, and the other four companies have the responsibility to investigate. The other two companies adopt a combination of risk self-assessment and group assessment, and hold them accountable, which is reflected in the salary system. In the daily operation and management of financial companies by the group parent company, only three companies have independent decision-making power and help them plan their finances according to the situation of the group parent company, and the group parent company does not take daily intervention; The remaining nine financial companies have no independent decision-making power, so they need to obey the allocation of the board of directors in some major capital investments, and the remaining three are managed by the parent company of the group.
As can be seen from the above data, the legal person status of financial companies has not been recognized, the financial decision-making power within the group is not great, the business source is single, and the risk prediction mechanism is insufficient.
2.2 China's enterprise group financial companies lack of risk management
2.2. 1 The concept of group parent company is backward.
The backward concept that the group parent company restricts the power and development of the financial company directly increases the operating risk of the financial company, which makes the financial company unable to function well and becomes an accessory of the group parent company. Because the parent company of the group mainly considers the production of products when investing, it does not have a professional investment vision, nor can it professionally analyze reference indicators and measure potential risks when investing. It is easy to invest in some bad assets, which will not only bring profits but also drag down the balance of funds of financial companies.
2.2.2 Weak risk awareness
Many groups put the emphasis of risk assessment on group production, while ignoring the management of risk response system of financial companies. Because many financial companies mainly engage in settlement, deposit and loan; The enterprise did not set up a separate risk assessment department for it, which led to financial risk loopholes.
In addition, because there are many scattered departments in the enterprise, they all lack a unified risk management mechanism. These departments generally make simple assessment and prediction according to departmental regulations, lack professional guidance, and are not accurate in risk assessment. However, financial companies will encounter two problems when doing risk assessment: (1) The risk information of each department is scattered, so it is not easy to collect it completely, which affects the overall assessment; (2) The forecast information of each department is inaccurate, and the forecast standard is relatively old, which is seriously out of touch with the actual production, resulting in inaccurate financial risk assessment and security loopholes in investment.
2.2.3 The legal person status of financial companies is not clear.
This is similar to the first point. Because the parent company of the group adopts centralized management in management, the decision-making power of the board of directors of the group is too large, and it is impossible to cover all aspects in decision-making planning. It is difficult to investigate its responsibility when financial risks occur, and the financial company can only bear the consequences. Moreover, the CBRC stipulates that financial companies have the right to provide financing advice to member companies, which is not only effective in settlement. Financial companies should broaden their business scope, improve capital liquidity and reduce risks. And negotiate with the unreasonable instructions issued by the board of directors to safeguard the company's own rights and interests without damaging the interests of the group's parent company.
3. Suggestions on risk management of financial companies in China's enterprise groups
3. 1 Improve the management system of financial companies in China's enterprise groups
The management guidelines for financial companies of enterprise groups can be formulated with reference to the Operational Risk Management Guidelines for Commercial Banks promulgated by the CBRC. For example, for the centralized management of the board of directors of the group parent company, it can be stipulated that the board of directors, the senior management of the company and the evaluation members of the risk team discuss relevant decisions together. Among them, the board of directors has the right to supervise the formulation of the overall planning scheme in line with the group's situation; Senior management of financial companies shall formulate relevant authority and system reports, and after discussion with risk assessors, minimize risks faced by various businesses and refine investment responsibilities.
At the same time, the parent company of the group should be restricted from contacting the funds of the financial company at will, and the income source of the financial company should be expanded, in which the parent company of the group accounts for 65% of the shares. Ensure the flexibility of financial company's capital operation and expand its business scope, so as not to lose the active management right within the company because it relies too much on the group parent company.
3.2 Strengthen the awareness of risk management
Financial companies should enhance their awareness of risk management, and predict and evaluate risks according to the production situation of the parent company of the group and the changes of external economy.
(1) Establish enterprise risk information base. Financial companies should cooperate with the parent company of the group to establish a new unified enterprise information management database, requiring all departments to classify and report their own financial risks and the early investment status of some related products, resulting in industrial benefits or cost losses.
(2) Establish the internal risk information base of the company. This is the perfection of enterprise risk information base. After mastering the overall situation, we can predict the risks within the company and refine the risk impact brought by different businesses.
3.3 Improve the company management system
Companies can improve their ability to predict and resist risks by improving their own management system. First of all, enterprises should improve the management of financial companies, set up supervision committees, strictly examine whether the investment decisions of the board of directors are reasonable and feasible, and reject those that are not optimistic about the risk assessment results. Secondly, link risk accidents with bonuses and benefits of various departments, refine job responsibilities, and strictly supervise the work authority of various departments and some business audit processes. Through detailed responsibility and strict supervision, we can improve the responsibility consciousness of financial personnel, thus reducing the risks brought by human factors and ensuring business safety.
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