Research On Risk Management Model Of Chinese Private Banking

With China's rapid economic development and the rise of China's financial industry, private banking for the existence of customer markets, and external environment are gradually mature.2007, known as China's private banking's "first year", from then on, the private banking in China has grown in commercial banks. And because of the high profits of private banking, we have paid more attention to it. However, so far, China's private banking we studies were focused on the business aspects of the development of countermeasures, but risk management is few. Private banking, a financial innovation business, which has a high demand on a country's legal, policy and financial environment. What's more, its high-risk characteristics make our private banking insufficient in risk management, for example, countries lack the necessary legal and regulatory, financial market development is not perfect, etc. Therefore, the study of private banking's risk management model, before and after the event, providing all aspects of private banking risk monitoring and compensation, for the development of private banking in China is significant.The thesis study the private banking that may face the risk, operational risk, market risk, credit risk, reputation risk, etc. in detail from the perspective of financial risk management. After analysis of our current business development and problems, this paper argues that China's private banking's lack of professional financial personnel, the lack of effective mechanisms for risk management, lack of money-laundering identification, risk suggest inadequate control are obvious. On this basis, the paper draw on the Dutch banking and private banking of HSBC Group's risk management experience, such as prior risk evaluation, risk control and post things in terms of compensation for construction of three private banking risk management. And accordingly risk management, private banking in China put forward specific measures, such as establishment of a comprehensive risk management system, improve the laws and regulations, improve the quality of bank employees, strengthen internal controls, external supervision, insurance buying behavior for the bank employees. It is hoped that through this research, it will improve the development of China's commercial banks in the private banking business in the process of risk management.