Understanding and prevention of operating risks in rural credit cooperatives

Abstract: In this article, for developing rural credit cooperatives, the issue of operating risks is a primary issue that cannot be ignored. The so-called risk is not just for non-performing loans. In the operation and management activities of credit unions, the possible losses caused to the operating efficiency of credit unions due to the existence of various uncertain factors all fall into the category of risks. Starting from the internship process of rural credit cooperatives, by analyzing the operating status of rural credit cooperatives contacted during the internship, the main types of risks that exist in rural credit cooperatives are summarized, and on this basis, the causes of the risks are analyzed. , explore, and communicate with foreign rural areas. Compare the current situation of credit cooperatives, and then put forward the main measures to solve or reduce risks, and finally achieve the purpose of improving the ability of credit cooperatives to resist risks. Finally, we put forward some prospects for the development prospects of rural credit cooperatives.

Keywords: rural credit cooperatives, business risks, countermeasures

1 Research background

1.1 Analysis of the significance and purpose of the topic

my country The economy is developing at a rapid pace, but in recent years due to the impact of the Southeast Asian financial crisis, its development speed has been hindered. In order to expand domestic demand, we have studied many economic phenomena from many aspects, but few people Recognize the important role that rural areas play in our economy. Our country is a large agricultural country. We must realize that rural development is the main aspect of expanding domestic demand in our country. Correspondingly, we must realize that we must study rural credit cooperatives that mainly provide production funds for agriculture. Only the healthy and stable development of rural credit cooperatives can ． It can provide a large amount of funds needed for agricultural production. Therefore, studying how to make credit unions work efficiently has become a key issue. Due to institutional, environmental and other reasons, rural credit cooperatives have relatively large risks, which seriously hinder their normal work. Therefore, it is necessary to conduct in-depth research. Otherwise, it will affect the efficiency of a credit cooperative in a small way and affect the entire rural credit in a big way. The reputation of the company.

1.2 Analysis of the subject content

As an institution with paid investment, rural credit cooperatives play exactly this role - that is, to transform the original direct free investment from the country into the current credit cooperative's Indirect paid investment in rural areas. However, for a long time, due to unclear social positioning, imperfect management systems, poor operating environment, and special service targets, rural credit cooperatives have faced greater operating risks in many aspects. The existence of various risks has hindered the development of rural credit cooperatives. Credit cooperatives play their role in providing indirect paid investment. Only by resolving the role of rural credit cooperatives can the bottleneck problem of rural economic development be solved. In this article, I conducted research on the institutional risks, management risks, credit risks, etc. that exist in rural credit cooperatives. Basically, it clearly explains the risk issues of credit unions. However, due to the lack of knowledge and lack of theoretical system, it cannot completely analyze all the risks that credit unions may have, and there is still a need to study the environmental risks among them. Deepening, I hope it will be helpful to the healthy development of credit unions. It also analyzes the types and causes of rural credit cooperatives' operating risks, and studies measures to prevent and resolve risks in rural credit cooperatives, so as to help rural credit cooperatives better play their role in serving rural areas.

2 Literature Review

Yang Debin "Dilemmas and Strategic Choices Faced by Rural Credit Cooperatives" Liu Fuxin "Investigation and Thoughts on the System Reform of Rural Credit Cooperatives" specifically analyzes the operating risks of rural credit cooperatives There are various types, and the reasons for their formation are also complicated. They are the result of the long-term interaction of various factors. There are both internal reasons and external factors: not only the compatibility with general financial institutions, but also its own characteristic. According to the historical evolution and current situation of my country's credit cooperatives, after analyzing various business risks, the causes of risks in rural credit cooperatives are clear. In order to gain an in-depth understanding and understanding of the management risks and diversification of rural credit cooperatives in this article, the basic writing ideas for writing the paper are referenced.

Fang Youyu's "Financial Risks in Rural Credit Cooperatives and Prevention and Mitigation Countermeasures" and Liu Fuxin's "Investigation and Thoughts on the System Reform of Rural Credit Cooperatives" focus on analysis and found that rural credit cooperatives have greater risks. After comparison, we already have development goals and business direction. Therefore, after combining the modern characteristics of rural credit cooperatives, we should realize that what we should do now is to study how to solve the existing risk problems of rural credit cooperatives, and the key to reducing the operating risks of rural credit cooperatives is to identify, prevent and control various operating risks early , therefore, it is necessary to specifically analyze the causes of risks in credit unions and propose specific and effective measures to prevent risks, thereby reducing the losses of credit unions. It provides a valuable reference for this article to clarify financial risks and the process of prevention and resolution countermeasures, allowing the author to better integrate the knowledge points learned in school. Combined with my many years of practical work in rural credit cooperatives, I provide the author with specific classic cases based on the understanding and dispersion characteristics of operating risks in rural credit cooperatives in Liandu District, making the theory of this article profound, concrete and factual. 3 Research Path

3.1 Analysis of the Causes and Countermeasures of Rural Credit Cooperatives’ Business Risks

3.2 Analysis of the Causes of Rural Credit Cooperatives’ Business Risks

3.3 The Problems of Foreign Rural Credit Cooperatives Comparative Reference

3.4 Countermeasure Analysis of Rural Credit Cooperatives’ Operational Risks

4 Conclusion

4 Progress Arrangement

5 References

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