Futures Business Branch Company’s Risk Management

With china’s entering into WTO, the futures market, as an important financial tool to price discovery and risk averting, plays a vital role in the development of modern market economy in China. The thesis takes the futures sales department as the object of study. The sales department not only helps developing customers, providing risk bearer and supervising and helping investors, but also plays an important role of settlement, data collection, risk control and profit generating. The sales department is quite important to the stability and development of the whole futures market.However, the sales department, usually with a small scale, numerous customers and high sales authority, is generally far away from the headquarters of the futures company. Therefore, it is the most possible trouble-making department in risk management. For example, the collapse of Barings Bank and the CNOOC event are both caused by the far-away sales department. It rings an alarm for all. However, in China, few studies are made on risk management of sales department of the futures company. This is why the author put sales risk as the object of this thesis.In this thesis, starting from his practice and interest, using the relevant knowledge of financial market and risk management, the author makes a thorough analysis on the risk of sales department. First, the risk of sales department can be divided into three categories, that is, legal risk, operational risk and technical risk. Second, the three categories can be further divided into thirteen types. Last, a research is made on risk prevention of the futures sales department according to the causes and symptoms. This thesis gives detailed correspondent solutions to the establishment of the futures sales department, daily management of the sales department, and emergency treatment of an accident. This thesis is aimed at giving suggestions to risk prevention and risk treatment of the developing futures market in China.