Research On Risk Management Of Bank Financial Management

The domestic personal financial service has been growing up rapidly since it was officially shown up in 2004. It has been experiencing from newborn, small-scaled, up until the current large-scaled. Looking back upon the development over past 10 more years, the commercial banks’personal financial services was totally a new creature produced under a background of a slow growth on interest liberalizing and securitization; was of an undeveloped environment of corporate financing, and was of a lack of investigating channels. It has connected to investigation and finance, has tied up customers’diversified needs and bank’s innovation plan, and has linked all interior steps within a bank so that the whole processing steps had been recreated. The financial products, which has become a curial part of investor’s asset allocation and a major service product of commercial banks, has been playing a beneficial role for investors during a unstable market environment. Meanwhile, there were further requests coming up with the soaring growth in scales of these financial services, such as the shortages of current financial risk management, the adapting into marketing environment changes, and the challenges of meeting improved criteria of supervisors.Bank A, which was referred within the article, was a pioneer in personal financial services among the domestic banks. It has built up a relatively systematic product line and an approach of risk management. However, there are still a few deficiencies upon financial risk management, such as incomprehensive approaches, insufficient independency of organized chart of risk management, etc.Three suggestions were provided in this research:A. Improving risk management’s organized chart by reset-up the fields in organization structure, employees’ evaluation system, and risk management processes. B. Identifying methods in details according to different types of risk, establishing quota by following the instructions which are ’strengthening liquidity risk, emphasizing operating risk, detailing credit risk, and fixating on market risk’. C. Providing system integration and optimization upon the fields of capitals, products, trading, data, and risk.The three solutions mentioned above were built up on concrete theories, and are relatively easy implemental. The challenges Bank A holds are regarded as typical problems in the whole industry, the solutions are believed to reference to. The research was conducted with approaches of investigation, observation, references research, quantitative analysis, qualitative analysis, experience summarization, etc.; it was analyzed Bank A’s financial business background and collected data, compared to modern management mode, related domestic as well as overseas theories and references, thoroughly diagnosed the causes and the problems on financial services’risk management over the case of Bank A.