Study Of Investment Banks' Risk Management

China's security business is a new industry, the history of which is just 20 years old. As a major segment of the security market, the adopted criterion of the operation and the adequacy of risk management so important that it determines the healthy development of investment banks and the security business.In this article, I will try to describe the risks that investment banks face, and to analyze the problems on the investment banks' risk management. With the promulgation of the new Security Law and related regulations, I try to refer the international risk management experience to Chinese investment banks and make my suggestions. This article consists of four chapters. Chapter One focuses on the significance and method of this study. Chapter Two presents the up-to-date development of the international risk management theory and the representative risk management method that could be referred to Chinese investment banks. Chapter Three tries to disclose the major risks of Chinese investment banks, and to study the detrimental consequence of such risks through case studies, and finally to present solutions under our new legal environment. Chapter Four describes the general principle, and the establishment of the risk management system on the background of internationalization of Chinese security business.In this article, I will recommends that domestic firms learn from foreign advanced risk management concepts, the use of scientific risk assessment methodology the company to quantify risks assessment, the risk of building a modern management system.The paper emphasizes on both theory and practicability. Through benchmarking the international risk management experience, I put forward my proposal on consummation of Chinese investment banks' risk management system, risk monitoring and risk evaluation method. For the upcoming series of innovative business risks, I have proposed innovative preventive measures.