The Research On Financial Risk Prevetion And Control In China

The thesis study on financial risk, mainly follows the research way of theories analysis, history investigation, realistic problem and the policy suggestion. The formation mechanism of financial risk includes the inherent vulnerability of financial system, the inherent vulnerability of financial institutions, the inherent fluctuation of financial asset price and the limited rationality of financial market participators. In the process of finance development, the financial risk has been always existed. In early days financial turbulence happened because the finance management can not keep up with the development of finance, in modern times the explosion of the financial risk happened because financial management can not adapt to financial development.Generally, our country financial market is healthy. But it should be pointed out that financial industry need concern the following aspects: the bad loan of the bank, the stock market reforms, the financing institution reforms, the market risk and financial crime etc. The reasons of Chinese financial risk are two types: one is the environment of the financial system, such as the economic reputation foundation is weak, the bank capital structure is not reasonable; another is that financing institution can not conform to the standard operation. This paper analyzes the financial management reasons which cause the Chinese financial risk, including the macroscopic economic policy, valid market rules, financial infrastructure and system protection etc. The financing institution is a social member of the economic system, its exist and development depends on itself construction and management levels, on the other hand it can not get away from its economic environment. In the suggestion part, this paper puts forward how to improve the lever of management of the financial risk. Besides improving the level of management of financial institution, it should improve exterior environment, including payment system, social reputation environment, and financial infrastructure.