Research On Risk Management Of Security Industry

As important participant of the capital market, securities companies plays an important role in the development of China's capital market. However, in the early development of China's securities industry, securities companies "value performance, despise management", which shows less awareness of risk management and weakness of risk management system and so on. Consequently, there were rapid exposures of risk incidents to the capital market that affect the stability of the market.As financial intermediaries, securities firms develop their business accompanied with financial risks. This work took Everbright Securities "Oolong" event as the background. The second chapter introduced the securities company's business and the corresponding risks, especially focused on liquidity risk, including concepts, features, and analyzed the main factors causing a liquidity risk. Through understanding of the concept of risk, the third chapter introduced the basic theory of liquidity risk control and management of the securities industry. By reviewing liquidity risk events of foreign securities companies, this following sector summarized the development characteristics and important experience on liquidity risk management and control of foreign securities industry.By understanding the basic theory and foreign development situation, the fourth chapter introduced net capital as the core of the securities industry regulatory system, and analyzed the restriction of net capital indicators in the process of innovation and development of the securities industry. Combined with China's securities industry liquidity risk events, we objectively analyzed the liquidity risk management issues in China's securities companies, including imperfect risk management framework, finite risk management, the absence of risk control consciousness around company's administrators; imperfect risk control consciousness and cultureBased on the requirements of comprehensive and active risk control management to securities companies, the fifth chapter explored the liquidity risk management system for securities companies, which contains quantitative management of liquidity risk control, organizational structure and management information system construction of liquidity risk control. First, through the brokerage of the forward and reverse stress tests conducted in-depth analysis, summed up a set of effective control of the total brokerage liquidity risk management process, to provide a specific and complete stress test process and to develop contingency plans designed to securities companies ideas; secondly, for the securities company's risk management framework, we made recommendations on organizational structure and institution building, and pointed out the necessity of liquidity risk management information systems; and finally, from the perspective of the regulatory authorities we put forward some possible improvement of a sound liquidity risk monitoring indicators.