The Research On The Relationship Of Investment Banking Business Structure And Risk Management

The outbreak of the U.S. subprime mortgage crisis on U.S. investment banks created a huge impact in 2007, the issue which about the investment bank's risk management was discussed hotly again. For a long time, besides the traditional business, investment banks committed to develop and carry out a variety of innovative services, especially in sophisticated way means to create complex, dazzling derivatives. Then the lucrative investment banks seems to ignored more or less the high-risk always comes with high profit, and whether this risk can be controlled by themslves. While risks are big enough to cross the boundaries which investment banks can be controlled by themselves, then once the large fluctuations occur, a crisis is rational. Investment banks have many different business, and risks and benefits is not the same, therefore, the investment bank's different business structure will have different risks. Now the investment banks carry on diversification for the pursuit of profit, the study on the relationship of investment banking business structure and risk management undoubted has a strong practical significance.Firstly, this article describes the definition of investment banks, development history, trends and other aspects of the narrative. Then introduces the investment bank's business, analyzes the structure of investment banking business situation in China and the situation with the U.S. investment bank was compared and analyzed the differences from both internal and external reasons. Next to the investment bank's own risk business, comparing the risk management of American investment bank status. Then article presents the model of the related business structure and conducts empirical research on the business structure and rish management by using the data collected in China and the U.S. investment bank and by the above study, finally the relevant recommendations are given about the business structure for China investment banking .Investment bank risk management involves many aspects, there are quite a number of issues need to be studied. China's investment bank started late, many problems are still, it's important to learn the experience of advanced foreign advanced investment banking, combine with China's national conditions and their own terms, building their own risk management system gradually to improve risk management, to ensure the healthy development of the industry. Investment banking is a kind of high risk industry, it's significance to maintain the stability and orderly development of this industry for the whole social life and economic stability.