The Analysis On The Operational Risk Management Of Ping An Securities Investment Bank

According to Basel II in 1988,operational risk,credit risk and market risk have been introduced into the general risk management framework.With the development of global economy,as well as the innovation of financial industry,losses caused by potential operational risk became much more obvious than the losses of other risk.Since 90 s,many securities companies suffered serious problems in mitigating operational risk,leading to great financial losses;some of those companies even bankrupted in the end.Therefore,operational risk management grows to be one of the major concern of the management of Chinese Securities Company.Also,the profession of management team,especially in the control of operational risk,has been an important indicator of competitiveness.In 2014 A share stock market IPO in China restart after one-year forbiddance,Leading to a more focus on the development of the whole financial industry and securities market.The reasonable development of securities companies and investment Banks sponsor business the stand and fall of quality level rise to be paid attention to,We select Pin An securities company as an example,and analyze its Investment banking business as a practical evidence for this article.Ping an was awarded as the best investment banking company for 4 years by Shenzhen securities exchange as the first brokerage firm who ran successfully IPO for over a hundred of small businesses companies.As the events of Sheng Jing Shan He and Wan Fu Sheng Ke,Ping An Securities Company is pushed to the forefront.With huge reparation and its credit rating decreased to C.After investigation,we believe the reason is highly related to Ping An Securities Company investment banking operational risk management.Therefore,according to the current situation of Ping An Securities Company with respect to operational risk,We deeply analyzed the problem faced by the company to potential causes through in-depth research on international risk management,especially in investment banking;more specifically,we use Goldman Sachs as an example to summarize solutions for the difficluties faced by Ping An.Considering the all the aspects,we provide corresponding solutions and approaches to improve the risk control process,the framework of practical risk management,and the monitor of risk management for Ping An,which can be a good example for other investment banking businesses or securities companies.