The Study On Operating Risk Management Of Brokerage Business Of China

With the high-speed development of China's securities market, there have been several alternations between "bull market" and "bear market". During the "bear market" from 2001 to 2005, many Securities were taken over, revoked or even closed, and the bankruptcy of South Securities brought about the sensational response in the market. Therefore, how to avoid risks and seek for the maximum revenue at the minimum risk is becoming the primary management target to Securities.Brokerage, as the most traditional business of Securities, is still the foremost business at present, where operating risk is the most serious and obstinate problem to tackle. This paper is keen on the study of operating risk management of Securities in brokerage business on the basis of the usual measuring method of international finance. Firstly, the paper introduces the necessary of identifying operating risk and the main types of risks, meanwhile, generalizes the main types of risk and analyses the reasons. Secondly, comparing to the international and Chinese models of operating risk management, the paper draws a conclusion, which is verified by some Security in China. Thirdly, the paper brings up some advices and suggestions to the operating risk management, including establishing a operating risk management Department, perfecting the system of brokerage business, adopting appropriate measuring methods, constructing a proper system to insure the timing of report and disposal, and encouraging everyone to participate into the work of operating risk management,...