Research On Risk Management Of Draft Banks

Shanxi draft bank wrote "Land of Wealth, "the brilliant chapter, creating a precedent for China's financial industry. To explore the draft bank's success or failure in the development process one hundred years ago, and excavate deeply experience and unique business philosophy in the course of the draft bank. We can find that the draft bank left a thick business culture to the world, its risk management culture is commendable.This paper applied historical analysis and historical comparison method ,selected the risk management of draft bank as the starting point , analyzed the risk management of draft bank Systematically by COSO enterprise risk management framework , and conducted a comprehensive interpretation of the key risk management activities of draft bank (ie, the risk management of exchange rate and the risk management of savings and loan) ,combination of modern commercial banking and corporate risk management practices, to seek for current situation of enterprise risk management experience and lessons, today learn from the ancient, to better absorb and learn the deep cultural and effective management of draft bank.This paper generalized and summarized the features and lessons learned in Shanxi draft bank risk management. With the current situation ,proposed four aspects that needs to draw and learn from. Firstly, the "hard" rules and "soft " culture complemented each other, to risk management purposes; Secondly, the combination of the clear property rights system and separation of ownership and governance structure of the gradual optimization, strict personal control of staff in addition to make risk management proved to be effective in draft bank. Thirdly,it is the essence of human resources management in draft bank that the special bonus shares system as a double-edged sword made the full motivation of employees in parallel with the strict constraints.Fourthly, guard against financial risks, and expand financial services in the business of draft bank, come to the conclusions that innovation is the most powerful weapon against the risk, so modern financial industry need to increase innovation and proactive prevent risk actively.The paper's conclusion won't only play a positive role in passing down and inheriting the draft bank, and in carrying forward the spirit of the Shanxi merchants, but also has very important meaning in preventing financial risks,promoting financial innovation and guiding modern corporate risk management how to deal with increasingly complex financial situation in future.