Financial Holding Company Risk Management Mechanism

The recent 20 years has witnessed the sharp changes in the global financial sector struggling in the paradox between the divided operation and mixed operation. In the past 10 years it is an imminent dilemma in China, too.The effect of the scale and scope of economy is evident. However, all earlier practices of financial mixed business have ended up with financial chaos to some extent. It is in this sense that the financial mixed operation has been a hard choice for the global economy in the past century. The key hurdle is that the risk control in mixed operation and in financial holding companies (FHC) conducting such business has not been solved.This article based on unique system of China's financial market. On the basis of referring to the international banking industry and financial risk management of financial share holding companies and from system point and critical risk management control point of view, study mainly by standard method and use Empirical studymethod as well. Using comparative study and structure research methods to study risk management system related problems of financial share holding companies in order to summarize the relevant experience of domestic and aboard financial industry and financial share holding companies and provide theory support of further study and policy options.This paper consists of five sections, the main content as follows.Chapter 1 is Introduction, introduced the significance of the topic, the status of domestic and aboard relevant study and main study methods and opinions.Chapter 2 Outlined financial share holding companies. Define financial share holding companies, and analysis the motivation of financial share holding companies' appearing.Chapter 3, 4 and 5 are against the special risk of financial share holding companies, and starts from financial risk management technology, set up the structure of financial share holding companies risk management system.