Comparative Analysis On Risk Management Of Chinese-european Financial Holding Company

Globalization and Integration in Economy have been challenging the financial institutions worldwide and driving the development of financial conglomerate. Generally there're tow typical models for financial conglomerate, which are financial holding company and universal bank. This article is focused on European Universal Bank to analyze the characteristics and advantages of this model in risk management. Meanwhile, the author also compared the situation of financial conglomerate between China and Europe. According to those comparisons, some useful suggestions are given to assist the construction of risk management system in Chinese financial holding company. This article argues that Universal Bank is also worth studying and can offer practical experiences in developing the risk management system of domestic financial holding company.In order to conduct the analysis, the author gave evidence and examples by obtaining the newest data and financial reports of two German Universal Bank, Allianz Group and Deutsche Bank. The purpose of this article is to find out a way to enhance the risk management of domestic financial holding company by comparing with the risk management of Universal Bank.Generally, this paper consists of two parts, Introduction and the Body. To introduce this topic, the author gives the purpose and significance of analyzing the risk management of financial holding company. Especially, during financial crisis which sprang from American Subprime Mortgage Crisis in 2007, this topic plays a critical role in dealing with the bad economic situation.In this paper there're altogether four chapters listed as follows.The first chapter is a general introduction to financial holding company, relating to its definition, characteristics, classification of risks and the background knowledge about its risk management. In the second chapter, the author conducts an analysis on the models and risk management of European Financial Conglomerate, setting examples and telling experience about German Universal Bank.Then the third chapter follows, which is focused on Chinese financial market. In this part, the current condition for Chinese financial holding company is described in detail and as a result a conclusion is also shown at the end of this chapter.In the last part, a comparative analysis is conducted to reach the purpose of comparing the risk management of Chinese and European financial holding companies.All in all, despite of the qualities for American financial holding company and European Universal Bank, the risk management of Chinese financial holding company should find its own way by referring to the advanced experience of the developed models mentioned above as well as adapting to the specific market of its own.