Research On The Risk Management System Of X Securities Branch Based On The COSO Risk Management Framework

The risk itself cannot be completely eliminated.What we can do is to minimize risks and strengthen risk management.Securities companies are the main participants in the financial market and play an important role in the financial market of our country.Risk management is the foundation and the core competitiveness of securities companies.In the financial market,securities companies have higher risk characteristics.Because the securities companies not only serve the capital market but also participate in the capital market,the changes of policies,environment,asset prices and trading rules in the financial market will have a great impact on the operation of securities companies.How to effectively manage the risks in the operation of securities companies has become an important issue of concern to the whole society.With the continuous expansion of the width and breadth of the securities market,the market demand and investment will surge,both the degree of market activity and the scale have increased significantly.With the rapid development of capital market,the number of branches of large-scale securities companies is growing rapidly,and the organizational structure is more complex.Some leading securities companies,including X securities company,have taken the lead in internal reform.Through business sinking,management sinking,personnel sinking and other forms,the organizational structure of the "big headquarters" in the past has been changed,and the branch company reform with the province as the unit and the so-called "branch company system" reform have been started.Generally speaking,the reform of "branch company system" is to reorganize the business departments that were independently and directly managed by the headquarters into "independent" securities companies under the leadership of the headquarters with the province as the regional boundary.With the advancement of the reform and the in-depth development of the business,the new organizational structure not only supports the business development,but also exposes some problems.The centralized risk managementsystem based on the "big headquarters" mode can not meet the risk management requirements of the "branch system" mode at this stage,so it is urgent to study and establish a branch risk management system suitable for the "branch system" mode.securities company X is a national,comprehensive and innovative securities company approved by China Securities Regulatory Commission.It was established in October 1991.In 2015,it began to try out and accelerate the reform of "branch system" after 2017.In the actual operation process,with the expansion of the branch management radius,the difficulty of risk management is also rapidly increased.Therefore,this paper analyzes the business status and risk management status of the branch of securities company X from the perspective of risk management of securities company X,looking for and analyzing the prominent contradictions in risk management.Finally,under the COSO risk management framework,this paper studies the construction ideas and implementation methods of the risk management system of branch of securities company X which adapts to the "Company branch system" mode.