Research on the Risk Control Theory Based on the Matching Scale of Credit Guarantee Companies and the Significance of Guarantee Enterprise Grouplization

Abstract

One of the effective ways in solving difficulties to raise capital for Medium and Small Enterprises (SEMs) is to provide credit guaranty in today’s world. This paper analyzes the defect of risk control in single credit guarantee companies, based on the analysis of the business operations of guarantee companies and the features of credit guarantee. Meanwhile, this paper does mathematical analysis on theory of risk control of guarantee companies with matching scale by using the law of large numbers, and on this basis, elaborates the necessity and significance of enterprise group.
Key words: Credit guarantee; Risk control; Grouplization; Law of large numbers