Research On Optimizing The Risk Management Process In Company G’s Securities Investment Business

With the rapid economic growth in China, the citizen’s income level has beencontinuously improved, the public’s investment awareness has gradually increased,and the securities market is becoming an important investment channel for investors.However, China’s securities market is still immature, and has strong speculativenessand greater volatility risk. From the view of trade subjects, including issuers,investors, and intermediaries, they are on behalf of different interest groups. Thus thesystem under which different group’s interest infiltrates and conflicts with each otherleads to the stock price up and down. Therefore, the securities investment byenterprises also inevitably exist risks while making profits.Because of high volatility in the securities market itself, there are generallyhigher investment risks. The companies for entity economy are less good at makingsecurities investments than professional investment companies. Currently, there havebeen mature researches on the latter’s investment behaviors, but extremely lack ofrelevant researches on the former’s investment behaviors. However, more and morecompanies for entity economy is independently making securities investments, andthey urgently need some guidance on risk management in securities investments, andattempt to find a risk management process suitable for them.Based on its securities investments’ scale and characteristics, risk roots, andexisting risk management process, this paper make a thorough analysis about issuesin the risk management process of securities investments, especially about operatingand management risks. Risk management is an important measure to reduce the riskof securities investment, but if there are some defects inside the risk management process, it may result that the risk management effects are not consistent withbusiness demand, thereby increasing the investment risk and negatively affecting theinvestment income. To provide the Company G with reasonable suggestions on riskmanagement process, this paper further analyzes the issues currently existing in itsrisk management process and essential reasons of those issues.Recognizing the problem, defects, and essential reasons in the Company G’s riskmanagement process, this paper combines with theory knowledge and practiceexperiences to put forward a scheme to optimizing the Company G’s riskmanagement process, including optimization design of risk management’s generalframes, goals and principles, basic process, and concrete implementations.However, to realize the optimization on the risk management process inCompany G’s securities investment business, there still needs appropriate measures toensure that this scheme can be smoothly implemented. The risk in securitiesinvestment business is an objective existence and affects the company’s wholeinvestment process. Therefore, the company must make its risky securitiesinvestments under strict management in the whole process in order to control theoverall investment risk.As a model of the companies for entity economy who engage in securitiesinvestment business, The Company G’s risk management problems in the securitiesinvestment process is very representative. Therefore， analyzing the Company G’srisk management status and problems and then putting forward to more reasonablesolutions, not only has a practical and guiding significance to the Company G, butalso has important reference value for the risk management in securities investmentbusiness of such companies. When engaging in securities investment business,companies must raise their awareness of risk management as a whole, and allocatetheir risk management with reasonable and efficient risk management systems,thereby efficiently reducing investment risk, and improving investment returns.