A Research On Legal Issues Regarding Risk Control Of Financial Holding Companies

With financial globalization and the wave of financial innovation, financial holding companies have become the major form of financial mixed operation organization. Financial holding companies act mainly by possessing the shares or other rights like delegated administration, providing a large scale of services completely or mainly in at least two different financial sectors, such as banking, security and insurance industry.In recent years, with the financial reform deepening eventually, China's financial holding company has made considerable achievements. But on the whole, there are still many problems need to be solved, which concerning China's financial holding company's internal risk management and regulatory supervision of external risks. The purpose of this paper is to discuss the problem of the financial holding company's risk control.This thesis covers five parts.The first part is a brief introduction of financial holding company. It contains some basic theories of financial holding company, including its concept, characteristics, types, development advantages, as well as the development of both domestic and foreign financial holding companies. This part lays a foundation for further study on the financial Holding company's risk and risk control.The second part analyzes the financial holding company's risk. It mainly focuses on the causes and types of the risks faced by the financial companies and the particular risks of China's financial holding company. This part aims to fully analyze the risks of financial company so as to put forward strategies for risk control.The third part elaborates the financial holding company's risk control, which is described as the internal risk management. From the enterprise's own point of view, the theoretical basis of internal risk management, its main contents and relative experiences of foreign financial holding company are analyzed in detail.The fourth section describes supervision of external risk, which is the other form financial holding company's risk control. This part is mainly based on the perspective of supervision agencies, analyzing the theoretical background of supervision sectors monitoring external risks, its main contents and inspiration from foreign financial holding company supervision of external risks by comparison.The fifth part is about China's financial holding companies'risk-control strategies. It is the last but the most important part of this thesis. In this section, on the basis of all the research above, the author proposes specific strategies for risk control, hoping that these measures can contribute to China's financial holding company in the future development.