Research On Financing Business Risk Of China Merchants Bank

Personal financing service which includes many exclusive and professional aspects plays an important role in Commercial banks, such as financial analysis, financial planning, investment advisory and asset management. The viewpoints of personal financing service are from abroad, recently, this kind of service has become mature, with long-term progress and practices, a scientific and perfect risk management system has also been formed in foreign financial systems. However, as a new banking business, personal financing service was just introduced into China’s commercial banks in the early of this century; with the vast development of the disposable income level and urgent needs of personal asset management services, this specific financial business has become increasingly important and had a rapid development, however, because most commercial banks tend to concentrate more on the visible business activities which refer to traditional banking debits and credits rather than the risk awareness of wealth management services and control in China, many problems have been exposed these years, and negatively influence commercial banks on the factors of their profits, reputation and brand awareness.As a typical case of wealth management services, China Merchants Bank and its series of related financial services will be seriously analyzed in this paper, many problems, gaps and causes of factors in its risk management system will be also revealed and emphasized, in order to further establish and enhance comprehensive theories of risk management; through perfecting the style of risk management system, by consolidating the staff profession ethics and focusing on the specialized training and education, finally improving the returns-risk assessment strategy to build an effective customer management system and other measures, so as to effectively prevent and control risks; from the key points to the whole perspective in China’s banking system, it is necessary and inevitable for commercial banks to pay closed attention to these viewpoints to improve the level of financial risk management, and more efficiently face unpredictable future challenges.The key point of this paper is to analyze how commercial banks effectively manage risks and build a financial risk control system by the contextual analysis of the risks of financial services and comprehensive risk prevention and control strategies. The purpose of this paper is to make commercial banks effectively realize the importance of risk awareness through the analysis of the actual cases, establish efficient risk prevention and control system in their future financial services, and perfect the further explorations and researches of risk management system on China’s commercial banking system.