Research On Risk Management Of Self-operated Business Of G Securities

With the development of the Chinese capital market, securities industry plays an irreplaceable role in financing, resource allocation, wealth management and other financial functions. Due to the industry characteristics, securities companies face various and complicated risk and lack effective risk management. These aspects become critical factors that strongly affect the securities survival and development.After comprehensive remediation during the period of 2004-2007, Chinese securities firms have had a significant progress in risk management. However, as innovative new business emerges and external environment changes, some securities firms lag behind in risk management and internal control, which led to serious risk events that adversely impact their survival and development and may have bad effects on the whole capital market. As we all know, external institutional regulation and internal risk management development protect securities firms from risk shocks. Owning to the highly information cost and less pertinence of external institutional regulation, internal risk management should be the first choice for securities firms when managing risk.The Article mainly concentrated on the G Securities firm's self-operated risk management, which put out the question, analyze and solve problems.First, the paper reviewed the self-operated risk management and some theory of risk prevention from domestic and overseas securities companies. On the base of that, the paper illustrate the snafu event and analyses defects of G firm in risk management and internal control. Finally, by taking some advanced experiences as a benchmark and referring to the norms of comprehensive risk management for securities firms, this paper puts forward comprehensive proposals on enhancing risk management in terms of information technology system, risk management, organizational system, corporate governance and external regulation. The article makes even hope to play a role as a reference in the field of securities companies' self-operated risk management in Chine, avoid similar incidents happening again.