Angle Based On Commercial Bank Personal Finance Business Risk Management Study

Personsal Financial planning is the process of meeting the life goals through the proper management of you finances.In developed countries, personal finance is already a very mature business, and has a consummate managing system on risk. However, as a new business,the risk of personal finance has not caught sufficient attention of our commercial banks.In this paper I start from the definition of personal financial services, analyzing the major risks existing in personal financing. By analyzing the current situation I put up the suggestions in the aspect of policy.The innovation of my paper lies in putting up the field of risk management of personal finance from the angel of commercial banks, based on former research of others. Till now all the existing papers about risk management of personal finance go from the angel of clients of commercial banks. However personal finance is designed from the model in which commercial banks are authorized by clients and the both sides form a relationship of"one to one". Financial services are promoted by commercial banks and the operation in the process is mainly under the control of commercial banks, therefore the risk should be more on the shoulder of commercial banks, but not clients.Market risk is the major risk existing in personal finance. At the same time I point out that because of the immaturity of the outside atmosphere and inside risk-control system, the credit risk and operation risk of personal finance provided by our domestic commercial banks are much higher than the two same kinds of risk existing in commercial banks of western countries. To solve this problem I suggest our government speed up the reform in financial system, the legislation of relative laws and the build-up of society credit system to improve the macro atmosphere of financial market. At the same time commercial banks should take further action to improve the managing system and managing technology of personal finance. The second point is the key. Experts-training is really an important way to strengthen their core competitiveness and reduce the risk. It is the only effective risk management that could bring about a long and sustainable development of this business.