Securities Compliance Risk Control

Securities Company Risks refers to the uncertainty of sustaining losses during corporate operation and management due to deviation of effective yield from expected return. Compliance risk is a fundamental risk among securities company risks, which refers to the risks of legal sanction, being supervised by authority, economic losses, or discredit caused by violation of laws, regulations, or rules by securities companies or their employees in the process of management or operation. Specialized in running monetary fund and negotiable securities, securities companies must exercising strict control over all operating activities; otherwise they may suffer unexpected losses at any time. In the past years, securities companies in China accumulate some valuable experience in exploring compliance system, raising compliance awareness, and enhancing risk management. The overall risk management level is yet to be raised. Internal risk management mechanism of most Chinese securities companies still stays in the phase of management by subjective judgment, and lacks effective system quantitative control instrument, which is not only difficult to meet the demand of supervision, but also restricts, to a great extent, effective implementation of compliance management and further improvement of compliance management system.This thesis analyzes the features and causes of compliance risks of Chinese securities companies after doing researches on compliance risks of securities companies at home and abroad and current situation of compliance management of Chinese securities companies, and generalizes the main types of compliance risks of securities companies. A general conclusion on compliance risk management (CRM) is made after the analysis. Meanwhile, this thesis further explores the systematic construction of compliance risk management:to build a highly efficient compliance management information processing mechanism through the construction of compliance management platform; to apply electronic IT to compliance management, make it more scientific and systematic; to evade various compliance risks to the maximum degree; and to realize full coverage and high efficiency of compliance management.