Analysis & Discussion Of Risks & Risk Control Measures Of Investing The National Social Security Fund Abroad

With the enlargement of social insurance fund scale and investment, investing abroad is developing gradually. However, risk control should take precedence of all others when fund operation maintain value or appreciate in value because of the special character of risk repugnance of social insurance fund. Although capital market abroad has got a long history and perfect mechanism, it is still an unfamiliar inverting environment compared to domestic market. Furthermore, other kinds of investment abroad failed times and times these years. Therefore it has got important actuality and urgency to researching strategy and methods of risk control of social insurance fund which is being invested abroad.This dissertation analyzes three steps of risk management which are risk recognition, risk judgment and evaluation and choosing risk control methods to control risk. Firstly it introduces basic identifications of risk and theoretical basis of investing social insurance fund abroad. Secondly, it analyzes primary risk of investing social insurance fund abroad. Moreover, it introduces VaR which is a popular risk evaluation method in the world. Its function, efficiency and operation in investing social insurance fund abroad are researched. Furthermore, advanced management skills of companies abroad in risk control of investing social insurance fund abroad are enumerated as well as failed cases of domestic institutions investing abroad. Lastly, strategies and measures of risk control in investing social insurance fund abroad is summarized based on these analysis. The core of this dissertation is to achieve the objective of minimizing risk cost when investing social insurance fund abroad get profits at the same time.