Study On The Risk Management Of Securities Market Based On Var

Financial risk management has never been paid so much attention before. With the development of economy-globalization and finance-integration, the global financial market has changed basically and structurally. And the risk management has become one of the core competencies for a security company. Among the various financial risks, the market risk is the most important one that the security companies are facing with. The method of Value-at-Risk (VaR) is known as the mainstream in this field nowadays. The biggest advantage of VaR is to consider the risk precisely in a structural way. From the inter management of a security company, this paper is going to analyze the process of the risk management (risk identification, risk measurement and risk controlment) based on the current situation of the Chinese stocks market and VaR. Further more, it puts up some difficulties and challenges that Chinese security companies may meet during the application of VaR.