Research On Risk Management Of ZY Securities Company Stock Pledged Repo Business

In recent years,the backlog risk of domestic stock pledge market has gradually been exposed,and risk events have frequently occurred,which directly impacted the shareholders and the companies and caused great concern from the regulators.Under the circumstances of the overall market risk has been mitigated,some securities companies are still facing severe risk of individual stocks closing out.The risk management capabilities of the stock pledged repo business need to be improved.In this paper,ZY Securities Company,a listed securities firm that has frequently experienced stock pledged repo risks in recent years,is selected as the research object.The article analyzes the problems and impacts of ZY Securities Company in risk management of stock pledged repo business.First,the phenomenon of risk out-of-control of ZY Securities Company's stock pledged repo business is explained with specific examples.Then,by analyzing the cause of risk out-of-control in the stock pledged repo business,it reveals the risk management problems of ZY Securities Company at different trading stages and their impact on the company's operations.Finally,according to the analysis results,the risk management improvement measures are proposed from the perspective of the business and the company.The study found that the reasons for ZY Securities Company's stock pledged repo business risk out-of-control are insufficient risk identification of pre-loan projects and poor response to post-loan risk.The root cause lies in its weak risk management consciousness,which lead to existence of chance and emphasize more on income and less on risk control.The specific performance is as follows,in the context of higher risks for projects that can be undertaken,the customer access standards are excessive loose and the risk assessment capability is insufficient at the pre-loan stage,including accepting defective projects,neglecting the financial risk of the target company,and the high proportion holding of pledge risk from the controlling shareholder.At the post-loan stage,it has problems including poor customer tracking,insufficient risk mitigation space,and slow response after customer violation.All of these impacts the company's operations.The company's reputation,performance,and operating stability have been severely affected.In response to the above issues,ZY Securities Company firstly should improve the due diligence system and project approval system at the pre-loan stage,and hold on the three lines of defense,improve the customer continuous management system and the default treatment mechanism at the post-loan stage.And to ensure the risk management measures are put in place,it should establish a risk-related performance evaluation mechanism and implement relevant accountability systems.Finally,ZY Securities Company need to strengthen the construction of risk culture,give full play to management's decision-making role and promote the construction of risk management informatization.Through the study,it can provide some ideas for other securities companies to strengthen the risk management awareness and actively respond to the risks of stock pledged repo business.