Case Study On Risk Control Of YF Financial Holding Group Mixed Business Model

Local financial holding company is a new type of financial enterprise with rapid development.It can conveniently integrate different financial business modules and regional economic resources and become the ?stabilizer‘ and important driving force of regional economic growth.A large number of local financial holding companies adopt the mode of operating financial holding company,This kind of mode helps to integrate local economic resources and financial resources efficiently and highlights the synergistic effect and scope economy of operation.However,there are many hidden deficiencies in corporate governance,internal control mechanism and risk management.For example,the subsidiaries of the local financial holding group do not have a really effective ?firewall‘,so the risk of cross infection is high.In particular,the operational local financial holding group's business structure and development mode are quite different from the pure holding type.As the main holding group often has its main business and has a strong industrial and financial color,subsidiaries form a close network connection structure within the group due to daily related transactions and complex equity relations.If a single institution defaults or even goes bankrupt,the risk will quickly spread within the group,forming a systematic wind of ?all win,all lose‘.Based on the elaboration and research of the relevant theories of the local financial holding company,this paper analyzes the development mode and risk management of the local financial holding company under the background of the current financial monitoring policy by comparing and combing the different development modes of the financial holding group,especially focusing on the development and risk management mode of the operational financial holding company.Taking Chongqing YF Group Co.,Ltd.,a representative local financial holding institution,as an example,this paper analyzes the support system and beneficial experience of risk management behind the success of YF group's representative business,as well as the inadequacy of the overall risk management model of its mixed business,and abstracts the urgent need to improve the risk management framework of the operating financial holding company Based on the analysis of the problem,the paper puts forward the improvement countermeasures.YF group mainly adopts the strategic centralized risk management mode,which can implement matrix management of parent subsidiary companies according to the characteristics of multi business sectors and multi-level corporate structure,and implement consolidated risk management through consolidated financial,specific and other channels.The first mock exam is more effective,ensuring the overall robustness of the YF group.However,due to the lax management and control of internal connected transactions,the compliance risk is more prominent;from the perspective of quantitative analysis,YF group failed to control the group's operational risk with the help of effective diversification.Finally,on the basis of case analysis,the paper puts forward countermeasures and suggestions for strengthening and improving the overall risk management framework of local financial holding companies in the future from the perspectives of optimizing internal control and compliance risk management system,optimizing business operation system,enhancing coordination effect,strengthening risk management system,building risk management culture and improving risk management means.