A Case Study On Risk Management Of Investment Banking Business In Z Securities Company

In the capital market,securities companies,as an important role of the market,provide investment,financing,resource allocation and other functions for the capital market.With the development of economic globalization,China's capital market is gradually merging with the international market.However,compared with Western countries,China's capital market development is not mature enough,facing various forms of complex risks.As a “gatekeeper” in the securities market,securities companies can't ignore the importance of risk management.This paper uses the case analysis method to take the sponsorship underwriting business in the investment banking business of securities companies as an example to study the investment risk management model of Z securities company.As a national large-scale comprehensive securities company,Z Securities is the first echelon of domestic brokerage rankings.It has been in the brokerage business and investment banking business.As of the third quarter of 2018,the number of completed small and medium-sized board IPOs and GEM IPO projects ranked the top in the industry.However,since 2018,Z Securities has been repeatedly punished by the Securities and Futures Commission,and the issue of risk management has aroused great public concern.Firstly,this paper analyzes the research status,related concepts and theories of risk management of investment banking in securities companies.Then,based on the theories and the current situation of investment risk management of Z securities company,we use the latest enterprise risk management framework(ERM 2017)to analyze the current problems of Z securities sponsorship underwriting business,including the defects of risk management organization structure,implementation of risk management process,the lack of employee risk management awareness,the enterprise risk culture construction,the relevant information disclosure and so on.Furthermore,the reasons for these problems and the influencing factors behind these reasons are analyzed too,including external macro factors and internal micro factors.Finally,the relevant improvement measures and suggestions are proposed from the external and internal perspectives of Z Securities,and also provide suggestions for improving the investment banking business of other securities companies and the entire securities market risk management system.