Study On The Risk Management Framework Of The YKJT Financial Company

Financial company is a special kind of non-bank financial institutions in our country’s financial system. Financial company could strengthen the enterprise groups used and centralized management the capital effectively, and, improve the enterprise groups management capability and core competitiveness, and, play an important part in the development of real economy, In the condition of China’s rapid economic development and the enterprise groups’rapid growth. Financial company has become an important part of China’s financial system. Since YKJT financial company had established, it has been committed to the internal control system construction, and, made efforts to optimize the risk management environment, but because of its backward,risk management philosophy, lack of risk management people and single ownership structure. There are some problems in the risk, management which influence and restrict its healthy, orderly development. Therefore, the establishment of ERM risk management framework has important significance to YKJT financial company.Through literature research, case analysis and comparative analysis and other research methods, this paper on the basis of previous studies of financial company risk management compared the banks and financial company, it analysed the current system of YKJT financial company risk management, pointed out that pointed out the deficiency in risk management. With ERM as the basis, this paper established a comprehensive risk management system of YKJT Financial company and puts forward a series of practical measures, which hopes playing a certain role of YKJT financial company’s steady development.Through this study, the following conclusions can be drawn:First, the establishment of a comprehensive risk management framework, is of great significance to strengthen the financial company risk management. Nowadays, the socialized production is in the continuous development, growing financing needs of the enterprise group which requires enterprise groups to adopt diversified financing channels to raise a lot of money. Thus, in such circumstances, the financial company developed. In the operation management, financial company had to combinated liquidity, profitability and safety effectively. If the company pursue the scale blindly, and only focus on the profitability of the financial capital, ignoring security or liquidity of the assets, it will generate serious risk. ERM framework can enrich the connotation of financial company risk management, adapted with our financial company risk management concepts and methods, and coordinated the relationship between risk management and income better. So, the HRM framework could play a positive role of improving the financial company risk management and promoting the healthy development of the financial companies.Second, the effective internal environment is the basis of the risk management framework of financial company. Unlike commercial banks and other financial institutions, the risk characteristics of financial company is attached to the enterprise groups, located in the service enterprise groups. If overemphasis on it, it will expand the risk of financial company. Therefore, for a better risk management of financial company,we must reduce the likelihood of risk, source constraints, and establish effective internal environment first.