With the strong support of polies，Chinese ABS market continues to develop and has become an important part of the capital market. Since more and more Trust companies are participating in the ABS business，it’s necessary to fully understand the risks and the risk managements of the ABS business. This not only helps to serve the issuers and the investors better，but also to helps trust company to take part in the ABS business with a full chain of multiple roles such as issue managers，original equity holders，financial advisors，underwriters and investors to improve overall profitability. This article mainly discuss the main risk characteristics that the ABS business may face in terms of underlying assets’ risks，transaction structure risks and participating agency risks. Also the cause reason of risks is specifically analyzed. This chapter also focuses on how to deal with the risk management for the trust company.