The Study On Our Country's Institutional Investors Interior Risk Control

Along with our country's opening reform and development of financial markets, Institutional investors will continue to grow and become an important component of China's financial market, influent the stability of financial market, promote the markets' integration and the transaction's modernization, accelerated the financial capital flow global .Institutional investors are the intermediary of financial, they have more risk complete to personal investors and other enterprises.With the development of the financial derivative and increase of trading volume, the risk that the institutional investors faced is strengthened day by day .They Must perfect the control system of the risk and take precautions against the risk. Risk management becomes one of the main business lines of institutional investors gradually. Risk management foundation that institutional investor survive and develop, institutional investor carry on risk management and it controls to be enough according to experience and regular system only, therefore it's necessary for them to strengthen the risk management.In recent years, some institutional investors had an first-class risk management model and information technology platform in the world, but still suffered the heavy loss even to go bankrupt, only was because of the flaw in the internal risk control system, historical glorious Bahrain bank going out of business, was because of the transaction authorization existence question, the immediate cause was the transaction Nick's cheat behavior. Our country's institutional investors experience told us, if there are flaw in internal risk control system, the organization investor can unceasingly accumulate risk in the management process. As a result of the scale expansion and the development of service type, our country's institutional investor have the risk unceasingly intensifies .The traditional internal control isn't satisfied, the responsibility of internal risk control not only including the protecting property security and inspecting accurately and reliability of accounting, but also including promoting enterprise to implement the management policy and the enhancing management efficiency. Based on the general theory of internal control, in view of the present situation of institutional investors' interior control, this article proposed a frame to constructs institutional investor interior risk control on our country.