Risk Management Of China's Investment Bank

Thanks to the highly developed capital market, investment bank becomes the key institutional investors as well as a financing tool of trading securities. It is now playing an active and important role in almost every field of capital operating by helping organize security market, balance capital supply, optimize resource allocation and promote industrial centralization. As the most vigorous and active financial industry, investment bank never stops its steps into new field of capital market. It is accordingly considered the most risky industry. The reason why those foreign investment banks make profits by realizing and controlling risks is that they fully understand the risks and take effective countermeasures against it.In the process of the development of China's investment bank and capital market, those potential risks caused by extrinsic and intrinsic factors should not be neglected. Facing the reality, solving the problems, effectively enhancing risk management, promoting their competitiveness is the main strategic task for investment banks in China.The whole thesis consists of four parts: Chapter I will give you the basic status of investment bank and its future as well by introducing its definition, development, business scope and function .Chapter II will tell you the types and origins of investment banking risks as well as the composing of the risk management system. Chapter III pays more attention to the status of China's investment bank development and its risk management. Systematically comparing China'sinvestment bank with foreign ones, I deeply reveal the questions that China's investment bank confront and systematically illustrate the importance and necessity of enhancing the risk management . Being the most important part of this thesis, Chapter IV considering the status of the risk management of China's investment banks and those successful experiences of foreign investment banks, the author states her points of view and countermeasures on how to promote the risk control of China's investment bank by innovating inner organized structure , establishing and perfecting of industrial supervising systems.